The Executive maintains its intention to reform the Hydrocarbons Law (Decree 109-83)given the need to establish a legal framework for the technical closure of oil operations.
However, although the proposal has been qualified as “urgent” by the Minister of Energy and Mines, Victor Hugo Venturastill A date has not been defined for its presentation before the Congress.
The statements are related to the process for Pereco Guatemala Limited oil companywhich since 1985 operates in the XAN field, Laguna del Tigre, Petén, and has as a closing date August 2025.
The company’s operation represents more than 85 % of the national oil production, according to data until August 2024.
The records of the Ministry of Energy and Mines report that, in 2022, there were 2.2 million barrels produced, 86 % (1.9 million barrels) were extracted by Perenco.
Although the final term of the contract is approaching, with four months, and that, according to Ventura, there is a legal vacuum, He did not specify the exact date on which the new proposal will be presented.
Although the Executive argues that it is an urgent legal reform and that, in addition, an increase in royalties is analyzed, he only assured that they hope that it will be “as soon as possible”, without expanding details of its content.
“The technical closing figure does not appear in the Hydrocarbons Law of 1983. It is a failure, a failure. It is necessary to monitor it,” Ventura insisted on the media this Tuesday, April 1, prior to a summons in the Congress of the Republic.
Since March 25, 2025, the Executive indicated that it is still in line with making another proposal other than the 6021 initiative, which also proposes reforms to the Hydrocarbons Law and creates another modality of deadlines for oil exploitation contracts.
According to Ventura, they do not support this proposal because grants 25 -year consecutive extensions to oil exploitation contractsbut does not consider the orderly closing frame for the restoration of the Ecological Park.
However, even without a defined reform proposal, Ventura insisted that as of August 13, 2025 the Close 61 wells in the Tiger Lagoon.
He acknowledged that Guatemala does not have a state oil company or experienced to handle the operation.
“We do not have a state oil company or have that experience. We would have to seek accompaniment to close the wells and start recovery,” he said.
Regarding the prices for the closure, Ventura said he did not know the approximate amounts. “I have no idea how much it costs to close the 61 wells, but there are other associated costs.”
In addition, he indicated that if the proposal is not approved, which they have not yet submitted, expenses would be incurred.
“If the law is not approved, another mechanism should be sought that complies with existing legal estates, which would be onerous for the country’s finances,” he said.
Although progress is made with the legal part, which must be processed and approved by deputies of the Congress of the Republic, the estimated time for closing will be extended for much longer. “Between four and six weeks per well, which is equivalent to between five and eight years in total,” he said.
The Executive works on a law that allows the creation of the closing figure for environmental restoration on oil exploitation. According to the minister of @Memguatemala In the best of the stage the closing of Perenco would take up to 8 years.@Guatevision_tv @prensa_libre pic.twitter.com/hbpmjzbhto
– Leslie Sánchez (@lsánchez_GTV) April 1, 2025
The Minister of Environment, Patricia Orantes, explained that it seeks to create an environmental closing mechanism for extractive companies, since the current Hydrocarbons Law does not contemplate this obligation.
Also read: They award Perenco Contract to operate pipeline for another 25 years
Discussion continues to spread
The discussion of the reforms is not a new issue for the government and the energy and mines portfolio.
In the absence of reform approval, the Perenco company The process of abandonment of wells began in 2023 and presented an environmental restoration plan.
Since then, it has been estimated that your retirement, without a contingency plan by the government, It could affect the local oil and asphalt production, as well as him Operation of the pipeline.
Since 2022, an initiative was presented to the Hydrocarbons Law that proposed to allow the continuity of oil operations through extensions based on the “economic limit.” However, the proposal did not advance in Congress during the previous administration, which generated uncertainty in the industry.