A year after six areas for oil exploration were awarded, five of them still dont have contracts signed between the contractors and the government.
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."
The increase in sales of lead abroad has been attributed to the shipments that have begun from the Escobal mine, belonging to Canada's Tahoe Resources.
Lead exports increased by $141 million between January and May this year compared to the same period last year, according to the Central Bank of Guatemala.
Fernando Castellanos, Head of the Mining Department of the Ministry of Energy and Mines, told Prensalibre.com that "...
An announcement has been made that the conditions for the tender for 574 kilometers of power lines will be released on July 31.
The work comprises of "... 29 new substations, expansion of 25 new lines and more than 12 adaptations, establishing 574 kilometers of electricity transmission, divided into 5 lots covering the national territory."
Reports have arisen that the document signed by the Presidents of both countries, is not even accessible and there is even less basic information about the project's feasibility.
To date there has been no information available on the technical studies, financial analysis and feasibility reports. Neither is the data on the geographical path of the project, rights of way to be acquired, the intended beneficiaries, the source of the total funding required and the overall impact of the mega project.
The Guild of Extractive Industries would accept the increased royalties as agreed at the start of the Pérez Molina administration.
An article in Prensalibre.com reports that Mario Orellana, president of the Union of Extractive Industries, said "... The initiative proposed by the Ministry of Energy and Mines (MEM) is embodied in the agreement that we voluntarily accepted at the start of this government.
There has been a reduction in the number of independent gas stations and an increases the presence of corporate brands.
The gas stations business in Guatemala has been transformed in recent years, as fewer and fewer service stations are being operated by independent companies, many of which have sold their establishments or been acquired by international franchise brands.
A total of 32 new hydroelectric projects are being developed in different stages in the country with a capacity to generate 1,128 MW.
Although Guatemala has hydro potential for generating 5000 MW, so far only 18% is being utlised, through the 20 hydroelectric stations currently operating which have the capacity to generate 937.50 MW.
" ... According to an inventory of the projects in the possession of the Ministry of Energy and Mines, last updated on 18 February and which includes projects of over 5 MW, eight projects are under construction with a capacity of 369.97 MW. In addition, 19 projects have been approved but have not yet started construction, having capacity of 648.85 MW, and five more are pending permits and process with capacity for 109.33 MW . "
Enel Guatemala has been authorized to develop and operate for a period of 50 years, the 137 MW hydroelectric project La Cascata.
The Ministry of Energy and Mines has authorized Enel Guatemala to develop and operate for a period of 50 years, the hydroelectric project La Cascata in Huehuetenango. The project will generate 137 MW using the flow of the river Quisil.
With an investment of $15 million in a second well, the reservoir volume and economic viability of its operation can be confirmed.
The company City Petén has invested $15 million in order to begin drilling a second well in the field at Ocultún in Petén. The Panamanian company plans to confirm the finding of a large reservoir of natural top quality gas and its production potential.
The Government has announced the creation of a unit focused on the incorporation of ethanol into the fuel energy matrix.
The Ministry of Energy and Mines (MEM), with technical and financial support from the Organization of American States will create a biofuels unit to incorporate a pilot plan to replace 5% of the gasoline used with ethanol.
Luis Ayala, CEO of hydrocarbons at the MEM, said: "The new unit will be attached to the Directorate General of Hydrocarbons at the MEM and will start work in the second half of this year. It will be responsible for the design of all policies, rules and procedures necessary for the implementation of biofuels, especially ethanol, in the energy mix of fuels."
The continued decline in production since 2011 might be compensated with the opening of a new well in the field of Atzam.
Data from the Directorate General of Hydrocarbons at the Ministry of Energy and Mines (MEM) reveals that in 2013 oil production reached 3.640 million barrels, 231 million less than the previous year when 3,870 million was recorded, which means a drop of 6%.
An evaluation is being made on whether to raise from 250 MW to 400 MW the PG3 tender in order to compensate for the delay in the project by Jaguar Energy, projected to be 600 MW for this year.
The Ministry of Energy and Mines and the National Electric Energy Commission are looking at increasing the energy in the PEG 3 tender from 250 MW to 400 MW. The contest will take place between April and June.
A bill is being presented to amend the law on oil and use the resulting revenues to strengthen the country's security forces.
The initiative to amend the Law on Hydrocarbons and eliminating tax breaks for oil extraction was presented by Congressman Amilcar Pop.
Pop explained that the country loses about $15 million annually through exemptions and privileges related to oil."The tax system must be fair and equitable, the Hydrocarbons Law does not comply with the principles of justice in tax regulations," he added.
Guatemalan Entrepreneurs are asking for the consultations with communities about the environmental impact of mining and infrastructure projects to be regulated.
The Guatemalan Chamber of Industry (CIG) and the Union of Extractive Companies (GEE) has proposed the creation of a regulation governing community consultations, believing that these should be one more indicator in the approval process, and should not be binding in nature.
Delays in the construction of 45 power plants which have already been awarded are mainly due to social issues and permits.
According to Edwin Rodas, Deputy Minister of Energy, 40% of these projects have been delayed because of financial issues, social problems and lack of permits for easements. Starting May 2015 these plants will have to supply power to Energuate and Empresa Electrica de Guatemala SA (EEGSA).