The renewal of the concession to Perenco was in doubt and Germany had offered to create a compensation fund to substitute it.
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.
The government announced it will impose precautionary measures against Marlin gold mine; on the same day the minister of Energy and Mines resigned.
The Inter-American Human Rights Commission (CIDH) had required the government to temporarily shut down the mine, owned by Goldcorp, as a precautionary measure to prevent environmental and human rights damages, while they investigate the matter.
The government has not yet decided if it extends the exploitation contract for the country’s largest oil field; this prevents granting additional exploration concessions.
The Mining Ministry, headed by Carlos Meany, has defined 12 areas suitable for exploration. Two of these presumably contain natural gas fields. To proceed, the Ministry is waiting for the approval of Alvaro Colom, president of Guatemala.
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.
Energy Minister Carlos Meany explained that president Alvaro Colom has not yet decided whether to extend the contract, “as they first must define what will happen with this area, before thinking of taking it out to tender”, he said.
The 84MW hydroelectric power plant will start operating in July 2011.
It was originally scheduled for the end of 2010, but after conducting an inspection of the construction site, the Energy Ministry announced it will be postponed 6 months.
Romeo Rodríguez, head of the ministry, stated that “7 hydro plants and a coal one could begin operations this year”.
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.
The project to expand the country’s energy distribution network (PET), will trim energy losses in $109 million per year.
A contract to execute the project was signed yesterday by Energy Ministry authorities and representatives from the winning consortium, “EEB-EDM Proyecto Guatemala”.
“According to the Ministry, energy losses range from $270 million to $300 million, and they would drop to between $161 million and $191 million”, reported Prensalibre.com.
In 2009, the country produced 4.9 million barrels, a 4.3% reduction when compared to 2008.
Between 2002 and 2003, oil production surpassed 9 million barrels, with a daily average of 24.000 barrels. In 2009, the daily average was just 12.500 barrels.
An article in Elperiodico.com.gt published statements by the Energy Ministry, who “attributes the drop to the natural decay of the oil fields, but assured there are investments planned to increase production at those fields”.
The cost of non-subsided electricity will increase 15% on February 1st.
Carlos Meany, minister of Energy, explained that the increase will only affect users who consume more than 300 kilowatts a month.
"The increase is in response to lower hydroelectric generation, caused by a shortage of rain, and increases in the price of petroleum", reported Prensalibre.com.
By the end of the month, the bidding dates for 12 new oil concessions should be known, when the corresponding governmental agreements are published.
Carlos Meany, minster of Energy and Mines, remarked that 7 new exploitation areas are located in Petén, 3 in the Pacific Ocean, 50 km away from San José port, while the remaining are located in Retalhuleu, Huehuetenango, Quiché and Alta Verapaz.
During the visit by the president of Brazil, Luis Ignacio Lula da Silva, Brazilian businessmen indicated that they are interested in exploring for oil and gas in Guatemala.
Energy and Mining Minister, Carlos Meany, said that during the Brazilian president’s stay in Guatemala, companies such as the state-owned Patrobras, indicated their interest in carrying out oil and gas exploration activities in the country, according to an article on Presnablibre.com.
Since yesterday, the first stage of electrical interconnection tests between Guatemala and Mexico are being carried out.
The Minister of Energy and Mines of Guatemala, Carlos Meany, reported that the installation and insulation of the system is being checked.
El Sol de Mexico published on its website: "If the tests are successful, then the interconnection can be operated … According to official sources, electrical interconnection will enable Mexico to supply Guatemala with 200 megawatts of energy, of which 120 will be acquired by INDE."