ST. GEORGE’S, Grenada, Ag 5, CMC – The Russia-based Global Petroleum Group (GPG) has given the Grenada government seven days to rescind its decision to terminate its agreements with the oil and gas company, after St. George’s had claimed that the company had failed “to meet its obligations”.
On Monday, a government statement had said that Prime Minister Dickon Mitchell “ will address the nation in due course to provide the national context for this decision” and that in “the coming days, the Office of the Attorney General and the Technical Working Group will provide further details on the factual circumstances which led to the Government’s decision”.
Attorney General Claudette Joseph said that Grenada had acted “lawfully, responsibly, and in the national interest” and after 18 years “and after every reasonable opportunity given to GPG, the government had a duty to the people of Grenada to bring these agreements to an end. Grenada deserves better, and we are moving forward with confidence and with respect for the rule of law”.
But in a letter addressed to Prime Minister Mitchell and signed by GPG director Eduard Vasilyev, the company said that the government’s attempt to end the agreements is “inconsistent with the contractual rights and obligations of the parties and is without legal effect.”
In 2008, government granted GPG a licence over 11 offshore blocks to explore Grenada’s waters for oil and gas. In 2013, GPG was granted a development licence and signed a Production Sharing Agreement, over four of those blocks, providing the legal framework under which any oil and gas found in those four offshore blocks was to be developed and its benefits shared with the country.
The government said that in 2016, it signed a Memorandum of Understanding (MoU) with GPG reserving the remaining seven offshore blocks for GPG, on condition that it first brings the original project, namely the four blocks into commercial production.
“That condition was never met. On 29th April 2026, the Government terminated the 2016 Memorandum of Understanding regarding the seven blocks that were reserved. On 1st August 2026, the Government terminated the Development Licence and the Production Sharing Agreement, granted in relation to the four (4) blocks,” the statement said.
In its August 3, 2026 letter to Prime Minister Mitchell, which is also copied to the Attorney General and the Permanent Secretary in the Ministry of Infrastructure, GPG contends that the government ignored the dispute resolution provisions contained in the Production Sharing Agreement (PSA) by proceeding with the termination before arbitration could determine whether the company had breached its obligations.
“We highlight again that until such is concluded, the PSA remains in full force,” GPG said, insisting that the agreement cannot legally be terminated while the contractual dispute resolution process remains outstanding.
The company is also challenging the legality of S.R.O. Nos. 13 and 14 of 2026, arguing that the government relied on statutory powers it does not possess and demanded that Prime Ministers Mitchell withdraw the Notice of Termination and revoke the statutory instruments within seven days, warning that “we will be constrained to trigger the dispute resolution procedure” if the demands are not met.
GPG said it has now reserved “all its rights” to pursue additional legal proceedings to protect its interests.
CMC//gh/ir/2026