Guatemala: Oil Concessions Still have No Contracts

A year after six areas for oil exploration were awarded, five of them still dont have contracts signed between the contractors and the government.

Wednesday, July 23, 2014

Prensalibre.com explains that "...The five areas that are pending are those awarded to Galax Garden Corporation, for the the San Francisco fields; the company Island Oil Exploration Services, SA, which will operate in Laguna Blanca; Trayectoria Oil & Gas Career, which will be situated in Cancuén as well as Greenfields Petroleum Guatemala, El Cedro Petén, Quiché and Alta Verapaz, and Loon-Petroleo Limited in Xacbal."

According to the Ministry of Energy, to date "... the commission has only approved the contract for the area of Cotzal- located in Petén, which was awarded to the French company Perenco Guatemala Limited."

Regarding the reasons behind the delays, the deputy energy minister José Miguel de la Vega said that "... 'The clauses have to be discussed a lot before being accepted ... until they are satisfied the parties can not pass them to the National Petroleum Commission for approval. '"



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."

Oil Contract Signed in Guatemala

January 2015

The contract awarded to Greenfields Petroleum to carry out exploration and exploitation of hydrocarbons in the El Cedro, between Alta Verapaz and Petén is now in effect.

The Ministry of Energy and Mines approved the contract with Greenfield Petroleum, effective as of January 2, 2015, to carry out exploration and exploitation of hydrocarbons in the area El Cedro 6-2012.

Oil Exploration Areas Awarded

July 2013

The government of Guatemala has awarded contracts to six oil companies who will each implement an average investment of $30 million.

Elperiodico.com.gt reports: "Increasing high quality oil production, and the possibility of finding natural gas reserves are on the radar of the six companies who received contracts awarded by the Ministry of Energy and Mines (MEM) in order to attract investment of over $30 million per year for the area. "

Offers by Oil Companies in Guatemala

February 2013

Nine companies have submitted 15 bids to the Ministry of Energy and Mines, in the tender for exploration and exploitation of seven oil fields.

Prensalibre.com reports that "The Cotzal area (Petén) received five applications; Laguna Blanca (Petén) and El Cedro (Alta Verapaz), three; San Francisco, two, and Cancuén (Petén) and Xalbal (Quiché) one, respectively. The area of La Libertad (Petén) did not receive any bids".

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