Extension to Oil Contract Signed in Guatemala

The renewal of the concession to Perenco was in doubt and Germany had offered to create a compensation fund to substitute it.

Friday, July 23, 2010

The contract, number 2-85, represents almost 98% of Guatemalan oil production and is unpopular among environmentalists. The extraction operations take place within the area of the Maya Biosphere Reserve, world renowned for its unique qualities and biological diversity.

Alberto Ramírez in Prensalibre.com writes that members of German political parties sent a letter to Guatemalan president Colom offering to set up a program similar to that implemented with Ecuador to save national parks from oil.

More on this topic

Ministers Question the Legality of the Perenco Expansion

July 2010

The Guatemalan Environment, Culture and Sports, and Interior Ministers have suggested that the law was broken in extending the Perenco oil exploitation contract.

According to Luis Ferraté, Environment Minister, by expanding the scope of the project the extension violates laws regulating hydrocarbon exploitation, in which "only contract extensions are authorized, not modifications or expansions, as stated in the contract signed by the Minster for Energy and Mines (MEM) with Perenco".

Petroleum Company to Invest $50 Million in Guatemala

May 2010

Perenco Guatemala Limited would invest $50 million if the government extends its 2-85 extraction contract in the north of Petén.

Geoffroy Martín-Denavit, CEO of the multinational corporation, explained they would drill 5 new oil wells in the first two years, expanding their production capacity.

Guatemala Extends Contract for Oil Company Perenco

March 2010

President Alvaro Colom endorsed a 15 year extension to Perenco’s crude oil extraction contract.

The announcement was made by Carlos Meany, Energy and Mines minister, who explained that if the contract was not renovated, the State would lose $125 million a year.

Newspaper Siglo XXI interviewed Meany, and asked him about why the Environmental Ministry opposed to renewing this contract.

Guatemala to put petroleum contract to tender

February 2009

The current exploitation contract with Perenco Guatemala will be extended for a maximum of 9 months, while the new tender is prepared.

SIGLOXXI.com reports on its website: "The Minister of Energy and Mining (MEM) will extend the Contract for Emergency Petroleum Services next week, for up to nine months. This has been entered into with Perenco Guatemala Inc. since 2005. The company administers the areas known as 1.85.

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