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.
In Guatemala, companies interested in operating and managing the Hydrocarbons Stationary Transport System are invited to present their offers on June 15.
Representatives from the Ministry of Energy and Mines (Mem) stated that the Qualification Committee, which will be appointed by an agreement, will be in charge of receiving technical-economic offers from 9:00 a.m.
The Ministry of Energy and Mines reports that the process to tender the operation of the pipeline has been approved by the Attorney General's Office.
Without giving further details on the terms of the contract for the operation of the pipeline, currently the responsibility of Perenco, the Minister of Energy and Mines, Luis Chang, stated that the bidding process received a favorable ruling and is progress is being made.
The Guatemalan government has granted a 50-year concession for the construction and operation of the Hydroelectric Station Recreo II, in the town of San Felipe Retalhuleu.
An article on Nacion.com reports that "... Through the agreement 215-2014 published today in Diario de Central America, the MEM allows installation of the plant for a period of 50 years. The agreement is signed by the Minister Erick Archila. "
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 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 .
The "La Libertad" area will be tendered again in June, as it was the only of seven proposed areas for exploration that did not receive any bids in the last tender.
From a total of seven oil fields, La Libertad was the only area that did not receive any offers, therefore the Guatemalan authorities have created a new tender to be launched in June of this year.
Nine companies have submitted 15 bids to the Ministry of Energy and Mines, in the tender for exploration and exploitation of seven oil fields.
Prensalibre.com reports that "The Cotzal area (Petén) received five applications; Laguna Blanca (Petén) and El Cedro (Alta Verapaz), three; San Francisco, two, and Cancuén (Petén) and Xalbal (Quiché) one, respectively. The area of La Libertad (Petén) did not receive any bids".
The government is negotiating negotiate contractual issues with City Petén, concessionaire of the exploration and exploitation contract for oil area Petén 1-2008.
In order to complete the award process seven legal aspects that have been identified by the Ministry of Energy and Mines (MEM) must be corrected, said the head of the ministry, Erick Archila.
The Canadian company will conduct geothermal exploration in concession areas of Joaquina and Atitlan.
The government of Guatemala has granted two concessions to the company, which will now focus on analyzing the potential for possible development later on.
The concessions are in Joaquina and Atitlan. The first is an 9 km2 area, located 35 kilometers northeast of Guatemala City, while the latter covers an area of 483km2, with three volcanoes and is located 144 kilometers northwest of the capital.