The Minister of Energy and Mines spoke of aspects of the bid: regarding the exploration period, it shall be for 6 years with the possibility of an extension of one year and an operating period of 25 years, with a 15 year extension.
"The type of contract is a production sharing contract in which the contractor absorbs the risk one hundred percent, said Luis Ayala, deputy director of hydrocarbons," reports Prensalibre.com.
The expected date for reception of offers is April 8th, 2011; the contracts will be awarded between one and two months later.
Petro Energy Company has the right to carry out oil exploration activities for 15 years.
"The term of the initial contract was for 25 years, and the company requested an extension, and the new expiration date is in December 2028 ... ", reported Prensalibre.com. The measure passed by the Guatemalan government was based on the Hydrocarbons Law and the Law of Fonpetrol which states that the term for oil contracts may be extended once by up to 15 years.
The Ministry of Energy and Mines in Guatemala is receiving the fee of $25,000 which enables bidders to take part in the tender for the concession of oil operations in 7 different areas.
According to an article Elperiodico.com.gt, the Ministry of Energy and Mines (MEM) this week opened the tender for the award of contracts for oil operations in seven areas under direct and indirect exploration formats.
The continued decline in production since 2011 might be compensated with the opening of a new well in the field of Atzam.
Data from the Directorate General of Hydrocarbons at the Ministry of Energy and Mines (MEM) reveals that in 2013 oil production reached 3.640 million barrels, 231 million less than the previous year when 3,870 million was recorded, which means a drop of 6%.
The new Minister of Energy and Mines intends to encourage the development of the mining sector in order to reach 50 thousand barrels per day.
Oil production in Guatemala has declined from 25,000 barrels to 10,000 barrels per day, admitted Minister of Energy and Mines, Erick Archer, who aims to promote an ambitious plan to boost oil output and reach 50 thousand barrels per day within 4 to 5 years.
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