Because of the fact that in the first six months of the year Guatemala's oil bill totaled $1,440 million, 6% more than what was reported in the same period in 2018, businessmen in the sector project a rise in sales at the end of 2019.
Figures from the General Directorate of Hydrocarbons (DGH) of the Ministry of Energy and Mines (MEM), specify that between the first half of 2018 and the same period of 2019, the amount of the oil bill, which includes the cost of importing oil derivatives such as gasoline, diesel, bunker, asphalt, kerosine, butane, gas, petcoke, among others, increased by $78 million, going from $1,362 million to $1,440 million.
The Guatemalan State is proposing to boost oil extraction by creating an agency independent of the Ministry of Energy and Mines.
Keeping in mind the model followed by Colombia, "the Ministry of Energy and Mines (MEM) wants to create a National Hydrocarbons Agency, to increase the exploitation of those resources."
"... The last two administrations have raised the possibility of creating entities related to oil exploration.
The company City Petén has discovered a reservoir of high quality condensate, rich in butane and propane, in an oil well in Ocultún, Petén.
"Everything indicated that Guatemala only had heavy oil with high sulfur content. However, this discovery of natural gas is changing the energy mix in the medium term, " said Luis Ayala, director of Hydrocarbons of the Ministry of Energy and Mines.
Based on the country's prospected oil potential, Ivanhoe Energy and Cobán Oil & Gas are proposing to invest $250 million.
Both companies signed a letter of intent for joint investments of $250 million and reported that they expect to finish the process in 30 months, sign an investment agreement, and then start building the plant.
"Petén north and Petén south have great potential, where we recorded 120 million proven barrels" of oil, said Evanan Romero, representative of Coban Oil. He also suggested creating a national company to avoid the "ordeal" involving the procurement and legal processes, reported Prensalibre.com.
The new Minister of Energy and Mines intends to encourage the development of the mining sector in order to reach 50 thousand barrels per day.
Oil production in Guatemala has declined from 25,000 barrels to 10,000 barrels per day, admitted Minister of Energy and Mines, Erick Archer, who aims to promote an ambitious plan to boost oil output and reach 50 thousand barrels per day within 4 to 5 years.
Since 2000, when 7.5 million barrels were extracted the number has been reduced, settling at 3.9 million last year.
Oil production in Guatemala has been gradually reducing, given the depletion of existing wells and the lack of exploration of new sites.
Although in the year 2000 7.5 million barrels were extracted, in the following years a decline has been noted, according to an article in ElPeriodico.com.gt.