ST. GEORGE’S, Grenada, August 5, 2026 — Global Petroleum Group (GPG) has formally challenged the Grenada Government’s decision to terminate its Production Sharing Agreement and Development License, describing the move as unlawful and warning it will pursue arbitration unless the Government reverses course within seven days.

In a letter dated August 3, 2026, addressed to Prime Minister Dickon Mitchell and signed by GPG Director Eduard Vasilyev, the company argues 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.”

The letter was copied to the Permanent Secretary in the Ministry of Infrastructure and Attorney General Claudette Joseph, whose office stamped it as received on August 4.

GPG contends that the Government ignored the dispute resolution provisions contained in the Production Sharing Agreement 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,” the company wrote, maintaining that the agreement cannot legally be terminated while the contractual dispute resolution process remains outstanding.

The company also challenged the legality of S.R.O. Nos. 13 and 14 of 2026, arguing that the Government relied on statutory powers it does not possess. It demanded that the Prime Minister 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.

The legal challenge follows Monday’s announcement by the Government that it had terminated GPG’s agreements after concluding that the company had failed to meet key contractual obligations over 18 years. Government officials said a technical review found that GPG had failed to complete its minimum work program, produce an acceptable development plan, or demonstrate it had the financial capacity to undertake the proposed offshore development.

The Government also said GPG had been notified of the alleged breaches and given opportunities to respond before the agreements were terminated.

The dispute comes just weeks after Vasilyev publicly accused the Government of delaying Grenada’s offshore energy program, claiming that GPG had been ready for years to launch a second drilling campaign but was unable to proceed because it had not received the necessary approvals.

GPG has now reserved “all its rights” to pursue additional legal proceedings to protect its interests, signaling that the dispute over Grenada’s offshore petroleum sector is likely headed for arbitration.

Prime Minister Dickon Mitchell has announced a news conference later today, where he is expected to address the Government’s decision to terminate GPG’s agreements and respond to the company’s legal challenge.