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 Nicaragua, a reform to the Hydrocarbon Supply Law was approved, which allows thermal generators to "freely" import fuels derived from hydrocarbons.
In relation to the approved reform of urgent character, Patricia Rodriguez, expert in energy, explained to Elnuevodiario.com.ni that "... it is not clear what will be the role of the Nicaraguan Company of Petroleum (Petronic) nor why the refinery of the company Puma Energy will stop producing full oil to generate electric energy."
The bill presented by the Executive Branch of Costa Rica to transform the state refinery Recope empowers the State to make alliances with private companies and "incursion into alternative chemical energy", but maintains the monopoly of fossil fuels.
On April 8, 2019, the Alvarado administration presented an initiative before the Legislative Assembly that seeks to transform the Costa Rican Oil Refinery (Recope) into the Costa Rican Company of Alternative Fuels and Energies (Ecoena).
From January to September of this year, imports of different types of fuels in Honduras totaled $1.155 million, 20% more than the same period in 2017.
According to statistics from the Central Bank of Honduras, between the first nine months of 2017 and the same period in 2018, the country reported an increase in foreign purchases of fuel, rising from $963 million to $1.155 billion.
The rise in fuel prices in recent years, together with the depreciation of the local currency has caused production costs to rise for domestic industry.
Between September 2015 and the same month in 2018, the average price of a barrel of imported fuel in the country went up from $54.9 to $83.7, which is equivalent to an increase of 52% in the last three years.
Tender for the cleaning, prevention and mitigation service for spillage of hydrocarbons and harmful substances from ships, maritime facilities and land facilities that occur in Panama's waters.
Panama Government Purchase 2018-2-03-0-08-LV-006853:
The bill being discussed in Congress aims to regulate fuel quality and encourage a drop in the prices of petroleum products.
The HydrocarbonsLaw that is being discussed in the National Congress will define, among other aspects, the marketing chain, wholesale importers, distribution and transportation.
Price of the gallon of regular gasoline: Costa Rica $4.05, Honduras $3.69, Nicaragua $3.58, Guatemala and El Salvador $3.06, and Panama, $2.81.
From a statement issued by the Ministry of Economy of El Salvador:
The current reference prices for gasoline and diesel are trending downwards due to supply and demand, on the demand side, there is less economic activity in the world, especially in China; while on the supply side, as a consequence of a rapid recovery in unconventional oil extraction from wells in the United States and a slow reduction of inventories of this nation have caused a decrease inprices. Likewise, the prices of hydrocarbonsare surrounded by uncertainty about the course of the meeting that OPEC will hold on May 25 in Vienna, Austria, where further efforts will be made to reduce oil extraction by member and non-member countries until the end of the year. This year, in addition to geopolitical factors that are affecting prices in significant way and which could vary from moment to moment.[GRAFICA caption = "Click to interact with graphics"]
In the view of importers of hydrocarbons, the bill discussed in Congress includes some factors that could put investments in the sector at risk.
The Honduran Oil Industry Council (Cohpetrol) asserts that the bill being discussed in Congress does not coincide with the work plan that was carried out jointly with the sector almost three years ago.
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."
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.
An announcement has been made that in November one of the companies which won a contract will start to carry out oilexplorations and that new tenders will be published for 2016.
From a statement issued by the Ministry of Energy and Mines:
Starting April the maximum permitted amount of sulfur will be 500 parts per million, and higher amounts of sulfur in diesel may only be used for electricity generation.
It is expected from the second week of May the new diesel will be publicly available at an additional cost of $0.06 per gallon, approximately.
A report from the state run and monopolistic Costa Rican Petroleum Refinery indicates that during 2014 the country consumed 19 million barrels of oil.
From the report by the Costa Rican Petroleum Refinery (RECOPE):
According to the records from the Costa Rican Petroleum Refinery (RECOPE SA), sales for the period January to December 2014 increased by 2.12% compared to the same period in 2013, going from 3,023,400 m³ in that year to 3,087,620 m³ in the past year (equivalent to 19 million barrels).
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