GEORGETOWN/HOUSTON, Dec 12 (Reuters) - Toronto-listed

oil producer Frontera Energy ( FECCF ) and its affiliate CGX

Energy ( CGXEF ) are seeking alternatives to resolve a dispute

with Guyana's government over rights to retain an offshore block

and continue exploration work there, Frontera said on Thursday.

Guyana'a Vice President Bharrat Jagdeo said in August the

government had opted not to approve the companies' application

to appraise a discovery in the block, which would have given

them more time with the license, as the South American nation

was not confident the firms could find a financial partner.

"Frontera and its joint venture partner CGX Energy ( CGXEF ) are

firmly of the view that the Corentyne block Petroleum Agreement

remains in place," Frontera said in a release to announce its

quarterly results, adding that the vice president's comments

have "materially affected" the partnership.

"The joint venture... has sent the government of Guyana a

letter activating a 60-day period for the parties to the

Corentyne block Petroleum Agreement to make all reasonable

efforts to amicably resolve all disputes via negotiation," it

added.

If they do not resolve the dispute in the 60-day period,

they can go to arbitration or a sole expert, according to the

agreement's terms.

Analysts and experts were expecting Corentyne to be the next

area to be developed in Guyana, which could have added diversity

to an industry completely dominated by a consortium led by U.S.

major Exxon Mobil ( XOM ).

Corentyne is the only area Frontera and CGX have left in

Guyana, after returning two other blocks to the estate, Demerara

and Berbice. In 2022, the companies announced the presence of

light oil and gas condensate in Corentyne and have focused their

efforts there since.

A CGX subsidiary has a separate project in Guyana for a $130

million port that can accommodate vessels of up to 150 meters in

length, which is starting commercial operations this month after

the company negotiated long-term agreements for its use, it

said.