Will the Pipeline be Ever Be Tendered?

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

Wednesday, April 4, 2018

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.

Now, "... the Ministry of Energy and Mines (MEM) has published two government agreements, which could see the launch within the next four months of the tender process for the operation of the pipeline from Petén to the terminal in Santo Tomás de Castilla."

Elperiodico.com.gt reports that "... Government Agreement 62-2018 approves the contract model that will be used to operate and administer the Hydrocarbon Transportation Stationary System. One of the clauses stipulates that the validity of the contract could be for a maximum of 25 years."

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More on this topic

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.

Oil Pipeline Operation to be Re-Tendered

July 2018

Due to discrepancies found in the proposal presented by Perenco, another tender will be held to grant the operation and administration of the Stationary Hydrocarbon Transport System in concession.

In its resolution, the Qualifying Board explained that some inadequate elements were identified in the Perenco proposal, which necessitate a new tender in the coming months.  According to the document, Perenco Guatemala, the sole bidder in the process, did not set a deadline for the contract, even though the published tender conditions established a maximum term of 25 years, with the possibility of extension.

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.

Guatemala: Tender for Pipeline Operation

December 2016

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.

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."

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