Oil and Gas in Panama

The Government plans to tender in March 2011, concessions for the exploration and exploitation in different areas of the country.

Thursday, January 20, 2011

As part of the process and to make it more attractive for investment, changes in current exploitation of hydrocarbons, which dates back to 1987, will be studied.

Financial terms established by current law in Article 47, determine that the Panamanian government should receive 20% of production during the first 5 years of operation, and then 50 or 60%. These conditions would not be attractive to investors.

It is also in discussion the model used in some other countries like Colombia, where the government gives control to private companies who take the risk of exploration and then charges royalties ranging from 5% to 20% if the deposits come to be exploited effectively.”

More on this topic

Uncertainty in Guatemala Over Oil

January 2016

The decline in international oil prices is already affecting companies that exploit the resource in the country, meanwhile, contracts awarded in 2014 have not yet been signed.

Authorities at the Ministry of Energy and Mines (MEM) and the companies that received concessions to explore and exploit oil in the country predict a significant decline in investment in the sector this year, due to the downward trend in oil prices in the international market. This year it is expected that three contracts that were awarded in 2014 will be signed, and also "... the possibility of an oil tender has arisen, for which several blocks in Alta Verapaz and Peten have been earmarked."

Nicaragua: State is Partner in Oil Exploration

September 2014

The adoption of the amendments to the hydrocarbon law provides for the participation of the state run company Petronic in exploration activities and the ability to partner with other companies engaged in the activity.

The amended law authorizes Empresa Nicaragüense de Petróleo (Petronic) to represent the State in the exploration and exploitation of oil and "... make 'associations and partnerships with companies who come to explore and exploit hydrocarbons.'"

Brazilian Interest in Hydrocarbon Exploration

August 2014

Two companies from the South American country are interested in oil exploration activities in the Nicaraguan Caribbean coast.

The speed with which approval could be given to the amendment to the Special Law on Exploration and Exploitation of Hydrocarbons , recently sent to the Legislature, would allow foreign companies interested in oil exploration activities to accelerate their arrival.

BG Group Starts Oil Exploration in Honduras

January 2014

The British firm, which will carry out exploration of oil and gas in eastern Honduras, is beginning the technical studies.

Next week BG Group will begin oil exploration in the Atlantic coast of Honduras, in a sea area of 35 thousand square kilometers. The initial investment for this project in 2014 and 2015 will be about $20 million.

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