The decline in global prices is the main reason behind the abandonment of several areas on the part of concessionaires, added to which is confusion around the mining moratorium.
Guatemala went from extracting 9 million barrels of oil in 2003 (a daily average of 24 thousand barrels) to just 3 million in 2015 (10 thousand barrels per day), recording a drop in production of 59.4% in twelve years. Factors such as the rapid decline in oil prices, lack of implementation of contracts and lack of transparency continue to affect the competitiveness of companies interested in investing in exploration and exploitation.
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."
Initially eight companies expressed interest in the tender comprising of five lots, but the Ministry of Energy and Mines only received five offers. It is expected that on Monday the contract will be awarded for the works to expand the national electricity transmission network of 230, 138 and 69 kilowatts.
With the opposition from the private sector, the government insists on delaying for five years the fulfillment of the agreement which establishes a reduction in the level of sulfur contained in diesel.
April 15, 2015 is the deadline given by the Council of Ministers of Economy and Foreign Trade of Central America (Comieco) to reduce the concentration of sulfur in diesel. However, the government argues that it does not yet have the necessary equipment "... to control product quality and reassure consumers that they are purchasing low sulfur diesel."
There has been a reduction in the number of independent gas stations and an increases the presence of corporate brands.
The gas stationsbusiness in Guatemala has been transformed in recent years, as fewer and fewer service stations are being operated by independent companies, many of which have sold their establishments or been acquired by international franchise brands.
With an investment of $15 million in a second well, the reservoir volume and economic viability of its operation can be confirmed.
The company City Petén has invested $15 million in order to begin drilling a second well in the field at Ocultún in Petén. The Panamanian company plans to confirm the finding of a large reservoir of natural top quality gas and its production potential.
The Government has announced the creation of a unit focused on the incorporation of ethanol into the fuel energy matrix.
The Ministry of Energy and Mines (MEM), with technical and financial support from the Organization of American States will create a biofuels unit to incorporate a pilot plan to replace 5% of the gasoline used with ethanol.
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 Ministry of Energy and Mines plans to increase domestic oil production from 10500 to 12500 barrels a day.
This is due to a strategy of self-sufficiency in electric power, according to Luis Ayala, director general of hydrocarbons, it is related to the drilling of two new wells and a change in the method of generating electricity in the Xan field, northwest of Petén.
The company City Petén has discovered a reservoir of high quality condensate, rich in butane and propane, in an oil well in Ocultún, Petén.
"Everything indicated that Guatemala only had heavy oil with high sulfur content. However, this discovery of natural gas is changing the energy mix in the medium term, " said Luis Ayala, director of Hydrocarbons of the Ministry of Energy and Mines.
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. Companies interested in participating have to pay $25,000 as an administrative fee in order to submit a bid.
Representatives from 45 companies attended a presentation about the oil areas that Guatemala will put out to tender.
Representatives from the companies Hupecol, Superior Energy Services, E & P Sucursal Colombia, Trayectoria del Gas, Petro Dorado, Ecopetrol, Pacific Rubiales, Geopetrocol and delegates from Perenco Guatemala and Perenco Colombia, participated in the presentation made by the Ministry of Energy and mines (MEM) held in the Colombian capital.