More Delays in Tender to Operate Oil Pipeline

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.

Thursday, March 14, 2019

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.

See "New Deadline to Tender Oil Pipeline Operation"

Víctor Martínez, Finance Minister, explained to Elperiodico.com.gt that "... some legal aspects are analyzed in order to be able to name the representatives of that portfolio in the Tender Board. Delegates from the Ministry of Energy and Mines (MEM), the Ministry of Public Finance (Minfin) and the Attorney General's Office (PGN) participate in the Board. Since last November, tenders were called for March 14, 2019, but that deadline was not enough for the Executive to form the Tender Board."

The article adds that "... The MEM merely replied that the receipt of offers was cancelled and it was decided to extend the deadline after the "legal issues" were resolved in favor. Perenco Guatemala filed a contentious-administrative appeal after the result of the previous tender and the call to submit new bids."

The company winning the tender will be in charge of the operation and administration of the pipeline that has a length of 353.4 kilometers from Campo Xan in Petén to the Piedras Negras oil terminal in Izabal.

See tender details.

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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.

New Deadline to Tender Oil Pipeline Operation

November 2018

March 14th, 2019 is the new date scheduled by the Guatemalan authorities to receive offers for the operation and administration of the Stationary System for the Transport of Hydrocarbons.

After last July were found disadvantages in the proposal presented by Perenco, the only bidder in the last contest and current administrator of the pipeline, it was decided to make a new process.

One Company Interested in Operating Oil Pipeline

June 2018

Perenco Guatemala, the current operator of the pipeline, was the only bidder in the tender to obtain the concession for the operation and administration of the Hydrocarbons Transportation Stationary System.

The contract to operate the system includes a 425 kilometer pipeline, five pumping stations and the Piedras Negras export terminal, in Puerto Santo Tomás de Castilla, and the model of the contract to operate and manage it will be for a maximum of 25 years, with an option to extend.

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.

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