After in May 2020, in the context of the pandemic caused by covid-19, Central American imports of oiling fell to a historic low of $242 million, in the following months an incipient recovery was evidenced.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graphic"].
By approving the changes to the Special Law for Exploration and Exploitation of Hydrocarbons, the country's oil sector contractors are exonerated from all taxes.
The amendments stipulate that transfers of agreed contracts shall not pay taxes during the exploration period, and the direct or indirect assignment or transfer of all or part of the rights derived under any modality for the activity of exploration and exploitation of hydrocarbons shall be exempt from any capital gains tax.
In the first nine months of 2018, countries in the region imported petroleum oils for $7,598 million, 25% more than in the same period in 2017, a rise explained by purchases from the U.S.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
The results of the examination carried out so far by the Norwegian company Statoil indicate the existence of "interesting geological structures that may contain oil."
Elnuevodiario.com.ni reports that "...Preliminary results of the first stage of research were presented on Tuesday by Statoil to authorities of the state-owned company Empresa Nicaragüense de Petroleos (Petronic), the Ministry of Energy and Mines (MEM), the Ministry of Environment and Natural Resources (Marena), and Enel."
The Canadian company Union Oil & Gas Group has announced that an agreement signed with the Ortega administration will allow them to carry out exploration works in the Sandino Basin in the Pacific.
This agreement is added to the four signed in June last year with Statoil for exploration and extraction works in a total area of 16 thousand square kilometers, also in the Pacific.
The current national accounts methodology could be causing an underestimation of the value and potential of an industry that has become a success.
In his article in Ca-bi.com, Paulo de León objects to the failure to update the Guatemalan national accounts system, resulting in an underestimation of the weight of the sector in the Guatemalan economy, as that system does not incorporate the shift in the energy matrix towards renewable energy.
After the signing of a contract between the government of Nicaragua and a norwegian company to explore for hydrocarbons, Costa Rica has noted that the award was made on disputed maritime areas in the International Court of Justice.
An article in Nacion.com reports that "... Foreign Minister Manuel Gonzalez said he prepared the letter to the company that received the rights to explore and exploit hydrocarbons in the Pacific coast, in an area that lacks clear boundaries between the Costa Rican and Nicaraguan territory."
The companies Statoil and Petronic won four contracts for exploration and exploitation of oil in a total area of 16 thousand square kilometers in the Nicaraguan Pacific.
The work will be carried out jointly by both companies, whom the government awarded contracts to for exploring and exploiting hydrocarbons in four different areas.
Through the Presidential Agreement 71-2015, the President, Daniel Ortega, approved the Contract for Exploitation and Exploration of Hydrocarbons offshore of Nicaragua in the Pacific, in the area called "C1", comprising an area of 3,980 square kilometers. Through a second agreement, Ortega also "... gave the green light to Statoil and Petronic for Hydrocarbon Exploration and Exploitation of Nicaragua Pacific offshore, in the area known as" C2 ", which covers an area of 3,986 square kilometers."
The Nicaraguan Oil Company has signed a cooperation agreement with a Canadian company for exploration of oil and gas.
Following the agreement signed between the company EastSiberian Plc, belonging to TMX Group in Canada and the National Oil Company of Nicaragua (Petronic) the Ministry of Energy and Mines has been approached in order to start negotiations for the subsequent signing of concession contracts.
The construction of the refinery El Supremo Sueño de Bolívar in Miramar, remains paralyzed as the government seeks funds to finance the second phase, the refinement complex.
At the moment, only the storage and distribution complex has been finished, works which were funded by Venezuela, but according to the agreement signed "... When oil is at $50, only 40% of that price is given in financing to the beneficiary country." Because of this, the government is seeking foreign funding for a second phase, but international conditions are not the best for resources for a project that "... does not seem to be profitable."
The fall in oil prices has reversed the cost equation which previously favored investment in renewable energy.
EDITORIAL
The effect of the price of a barrel of oil falling below $50 is now being felt in the decisions which must be taken by energy buyers and regulatory officials in the electricity markets. The thing is that -suddenly - electricity produced using hydrocarbons may cost less than energy from solar power, and even hydroelectricity.
The adoption of the amendments to the hydrocarbon law provides for the participation of the state run company Petronic in exploration activities and the ability to partner with other companies engaged in the activity.
The amended law authorizes Empresa Nicaragüense de Petróleo (Petronic) to represent the State in the exploration and exploitation of oil and "... make 'associations and partnerships with companies who come to explore and exploit hydrocarbons.'"
The government has signed memorandums of understanding with the British Geoex and Norway's Statoil, to carry out studies and activities in re-exploration and exploration of gas-oil in the Pacific.
The agreement signed with the Norwegian state run company Statoil focuses on the development of a study for exploration and exploitation of hydrocarbon potential in the Nicaraguan Pacific, while the one signed with Geoex, allows for a study of surface reconnaissance around the Pacific Nicaragua, about 32 thousand square kilometers of water and about 9 thousand kilometers in line for the complete study which will allow Statoil to start exploration activities.
A proposal has been made to amend the Special Law on Exploration and Exploitation of Hydrocarbons in order to further extend search deadlines from 5 to 10 years for the operating period and from 1 to 6 years for exploration.
In order to provide longer time frames for exploration and mining stages, the President has sent to the National Assembly a proposal to reform the Special Law on Exploration and Exploitation of Hydrocarbons.