After the announcement by the Ministry of Energy and Mines (MEM) made at the meeting of Block Heads of Congress, that the government will not extend contract 2-85 for oil exploitation of the Xan field operated by the Perenco firm because it is located in a protected area, this was stated.
The general manager of Perenco, Ludovic Malcoste, responded in writing that they followed “with concern” the meeting of block heads and the ministry held on Tuesday, March 12, but that they see “with pleasure” that the Congress deputies seek clarity and understanding better the MEM’s position regarding the closing of the contract operated by that company.
“The MEM supports its position on the closure of the oil contract operated by Perenco based on environmental, not economic or social considerations,” the company says in its written statement.
“The MEM does not realize that the closure of the Xan field implies the end of the oil industry. There is no viable solution that allows considering the operation of the refinery where 90% of the asphalt consumed in the country and the pipeline are produced, without the production of the Xan field,” they add in their response.
They consider that the deputies were emphatic about the importance of taking the populations into account, by mentioning aspects such as social and economic development at the meeting. The firm adds that “the MEM and the Executive (Agency) must listen to the elected deputies and mayors who represent the interests of the communities that are in the areas of influence” to seek solutions that benefit society, especially Petén, since it would be the department most affected when oil operations end.
They add that it is important that the Executive and Legislature find and promote legal reforms that allow the continuity of the oil industry, since it still generates economic and social benefits for both the State of Guatemala and the municipalities and communities.
MEM: Closure would take several years
For now, the MEM is working on a roadmap for the scheduled closure of contract 2-85 that includes the closure of the oil operation or extraction and the environmental issue, explained Minister Víctor Hugo Ventura, in a meeting at the Commission. of Energy and Mines of Congress this Wednesday, March 13.
The official confirmed that the contract will not be extended because it is in a protected area and would be illegal, a decision that is based on the respective legislation. He added that there is a commitment to recover the protected area of the Laguna del Tigre National Park.
“When talking about scheduled closure, in the strict sense of the law, in August 2025 contract 2-85 will cease to operate,” but the question is whether that is what is best and if there will be time to make a closure. programmed since according to specialists, more time is required, he expressed.
Ventura stated in statements that “if you have had 40 years of oil exploitation, why not do that last stage well done, taking the time required, which does not mean that it will be extended for 25 more years.” because you have to seal well by well and the figure must be analyzed to make the scheduled closure.
He added that during this scheduled closure period there will be a final production phase, and after August 2025 only scheduled wells will be able to operate, until production reaches zero.
He added that the State does not have the capacity to operate that phase, and the idea is not to create an oil State or turn it into an oil businessman, “but it is also very difficult for another company to come and operate what Perenco is doing, so the “The company will have to do what the contract indicates.”
Regarding the period that this scheduled closure would take, the minister said in the March 12 meeting that it would take between 2 and 4 years, while on March 13 he mentioned that between 5 and 6 years, but that the experts will make the evaluations to define the deadlines.
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