Perenco has operated in Guatemala since 2001. Production comes from the Xan field in the Petén region, in the north of the country. Extended in August 2010 for 15 years by the President of Guatemala, the Production Sharing Contract provides for an increased share of the revenues for the State through higher state participation and royalties, and committed Perenco Guatemala to an investment programme of $35 million that was realized in the first two years of the extension. This included the conversion in 2012 of Xan-14 into a deeper reservoir that will be assessed for production in 2013.
This investment program reduced production decline to 4.5%, the result of constant well reviews and a program of side tracks, acid jobs, and perforations of new zones.
Perenco operates Guatemala's sole pipeline network connecting the Xan and Rubelsanto fields to the Piedras Negras terminal on Guatemala's Atlantic coast. The facility has a storage capacity of 430 000 barrels and dispatches an average of 12 vessels per year.
Perenco also operates a refinery with a processing capacity of 5 000 bopd, producing fuel oil for use at Xan and asphalt for the Central American consumer market.
A power optimization project started in 2011 is ongoing, allowing more fluid from the reservoir and much greater efficiency of the overall operation. The project has entered the construction phase and is expected to be completed in early 2014.