Extension of Oil Contract in Guatemala

Petro Energy Company has the right to carry out oil exploration activities for 15 years.

Monday, December 16, 2013

"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.

According to Luis Ayala, chief of Energy and Mines, the contract could be published next week.

Meanwhile, Rafael Maldonado , coordinator of the Legal Environmental and Social Action Center, (Calas), explained that the if they continue with the "extension of contracts they should repeal the amendment to the regulations to the Hydrocarbons Law, with recoverable costs were extended, a situation which is causing the state to lose a lot of money."



More on this topic

Guatemala Oil is No Longer Competitive

March 2016

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.

Oil Contract Approved in Guatemala

August 2013

The government has awarded the company City Petén a contract for exploration and exploitation of oil in the Yalcanix area in the department of Petén.

Jose Paez, legal representative of City Peten, said they plan to start environmental impact studies and in the next three years will be investing $30 million during the exploration stage.

Guatemalan Oil Opportunities Presented

August 2012

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.

Ministers Question the Legality of the Perenco Expansion

July 2010

The Guatemalan Environment, Culture and Sports, and Interior Ministers have suggested that the law was broken in extending the Perenco oil exploitation contract.

According to Luis Ferraté, Environment Minister, by expanding the scope of the project the extension violates laws regulating hydrocarbon exploitation, in which "only contract extensions are authorized, not modifications or expansions, as stated in the contract signed by the Minster for Energy and Mines (MEM) with Perenco".

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Ministerio de Energía y Minas de Guatemala

Organization that operates in Guatemala.
Phone: (502) 2419 6464

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