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.
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.
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.
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.
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.
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.
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 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.'"
Honduras's government denies that it is negotiating with the transnational Chevron over a concession for oil exploration in the Caribbean Sea.
This was confirmed by the Minister of the Presidency, María Antonieta Guillén, after leaders of the College of Mechanical Electrical and Chemical Engineers, of Honduras (CIMEQH) denounced that negotiations were being made for the direct award of 38 thousand kilometers in the Caribbean Sea for oil exploration.
The contract grants a concession to BG International Limited for exploration and development in more than 35,000 square kilometers in the Caribbean Sea.
On April 11 of this year 2013, the Cabinet approved the contract which has a term of 10 years, having the condition of returning to Honduras 50% of the area exploited from the corresponding studies on a term not exceeding four years.
Four awards have been made so far in the Caribbean and in the Pacific, to Noble Energy, Infinity Energy and Industrias Oklahoma Nicaragua.
According to the Minister of Energy and Mines (MEM), Emilio Rappaccioli, "the company Noble Energy, which between 2013-2015 will invest between $180 million and $670 million is at the moment making progress in drilling the first well, but in Nicaraguan waters" reported Elnuevodiario.com.ni .
The government has awarded the company City Petén a contract for exploration and exploitation of oil in the Yalcanix area in the department of Petén.
Jose Paez, legal representative of City Peten, said they plan to start environmental impact studies and in the next three years will be investing $30 million during the exploration stage.
The approval came after a long period of legal analysis.
The map on the internet which offered oil concessions in geographical areas who's sovereignty is disputed has been removed.
For its part, and after an exchange of notes between both governments, Colombia has acknowledged that the concessions given so far by Nicaragua are from areas where
Nicaraguan sovereignty has not been disputed.
"I want to be very clear and emphatic on this: the concessions granted by the government of Nicaragua in July this year are concessions that are west of the 82nd meridian," said Foreign Minister Maria Angela Holguin.
Nicaragua published a map offering ocean areas for hydrocarbon exploitation while Costa Rica claims ownership over some of these sea territories.
In a protest note sent by the government of Costa Rica to Nicaragua, Costa Rica states that "it does not acknowledge or recognize any right or effect or product of any concessions granted in the past or in the future by Nicaragua ...
The government of Guatemala has awarded contracts to six oil companies who will each implement an average investment of $30 million.
Elperiodico.com.gt reports: "Increasing high quality oil production, and the possibility of finding natural gas reserves are on the radar of the six companies who received contracts awarded by the Ministry of Energy and Mines (MEM) in order to attract investment of over $30 million per year for the area. "
Businessmen claim that "there are blatant requests from government officials for illegal payments or for having a share in the business."
"U.S. oil company Greenfields Petroleum Limited, which is involved in the bidding competition to expand the exploitation of hydrocarbons in the country, yesterday asked the Ministry of Energy and Mines (MEM) for a clear and transparent process," noted an article in Prensalibre.com .