Petroleum contracts in Guatemala extended for 15 years
Congress approved the Fonpetrol Law which establishes a new distribution of the royalties for the extraction of crude oil and allows for the extension, for up to 15 years, of current petroleum contracts.
Wednesday, November 19, 2008
The law established a 5% royalty on petroleum to be distributed among all the Departmental Development Councils; 20% will go to the departmental councils which have petroleum operations. 3 percent will be used for environmental protection.
Petro Energy Company has the right to carry out oil exploration activities for 15 years.
Starting yesterday, and for the next 15 years, the company will operate the oil fields located in Rubelsalto, Guatemala.
The Guatemalan Environment, Culture and Sports, and Interior Ministers have suggested that the law was broken in extending the Perenco oil exploitation contract.
The current exploitation contract with Perenco Guatemala will be extended for a maximum of 9 months, while the new tender is prepared.
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