Guatemala: Tender for Pipeline Operation

After the expiration of the concession currently held by Perenco, a tender is to be launched for the operation of a pipeline connecting the Xan field in Peten with the oil terminal in Piedras Negras.

Tuesday, December 6, 2016

Elperiodico.com.gt reports that "...Vice President Jafeth Cabrera, after a meeting in Puerto Barrrios, Izabal, said the contract with Perenco which expires next year will be extended by no longer than six months in order to realise the tender."

"Perenco has an operating contract for the Xan area, another contract for the refinery in La Libertad and a 400 kilometer pipeline. It also has been awarded the area of Cotzal that is currently pending approval."

The pipeline that Perenco operates is the only one in the country through which the transport of crude oil is concentrated.

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More on this topic

Contract Awarded to Operate Oil Pipeline

July 2019

For the second time, Perenco Guatemala Limited was awarded a 25-year contract to operate the pipeline from Campo Xan in Petén to the Piedras Negras oil terminal in Izabal.

After multiple delays were reported in the tender, the Ministry of Energy and Mines of Guatemala was able to award the new contract, which was signed on June 18 by both parties and published on July 24 in the newspaper of Central America.

More Delays in Tender to Operate Oil Pipeline

March 2019

Because the Guatemalan authorities were not able to form the Tender Board, a new date will be set for the receipt of tenders for the operation and administration of the Stationary Hydrocarbon Transport System.

Although the deadline for tendering for the pipeline had already been extended in November last year and March 14, 2019 was set as the deadline for submission of proposals, the authorities of the Executive failed to form the Board and now a new deadline will have to be announced.

Guatemala: Progress in Oil Pipeline Tender

May 2018

The Ministry of Energy and Mines reports that the process to tender the operation of the pipeline has been approved by the Attorney General's Office.

Without giving further details on the terms of the contract for the operation of the pipeline, currently the responsibility of Perenco, the Minister of Energy and Mines, Luis Chang, stated that the bidding process received a favorable ruling and is progress is being made.

Will the Pipeline be Ever Be Tendered?

April 2018

The Guatemalan government has finally approved the contracting model and promises to launch the bidding process within the next four months.

At the end of 2016 the Ministry of Energy and Mines announced that it was beginning to prepare, at that time, a plan to call a new tender and grant a concession for the operation of the pipeline, currently in the hands of Perenco, to a new company. Due to delays in the process, in February last year the contract with Perenco was extended for 18 months, meaning that August would be the deadline for the new launch.

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