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.
The Government plans to tender in March 2011, concessions for the exploration and exploitation in different areas of the country.
As part of the process and to make it more attractive for investment, changes in current exploitation of hydrocarbons, which dates back to 1987, will be studied.
Financial terms established by current law in Article 47, determine that the Panamanian government should receive 20% of production during the first 5 years of operation, and then 50 or 60%. These conditions would not be attractive to investors.
The government has not yet decided if it extends the exploitation contract for the country’s largest oil field; this prevents granting additional exploration concessions.
The Mining Ministry, headed by Carlos Meany, has defined 12 areas suitable for exploration. Two of these presumably contain natural gas fields. To proceed, the Ministry is waiting for the approval of Alvaro Colom, president of Guatemala.