Honduras keeps upstream hydrocarbons flame lit

The extension of an oil exploration contract in Honduras targeting the Caribbean offshore area of La Mosquitia is under analysis.

The energy department (SEN) provided the update, highlighting that a request to extend the 10-year deal was submitted in February 2022, after the current administration took office in January.

The SEN adds that the contract with BG Group – taken over by Shell in 2016 – was published in the official gazette in July 2013 after an MOU was inked the previous December.

In response to a request for comment, Shell told BNamericas: “BG International Limited, Honduras branch, transferred all rights of ‘Zona Maritima’ of Honduras Republic to a Azipetrol 85% and CaribeX 15% [consortium]. This transfer was supported by the government and published in Honduras’ official gazette of 3 June 2017. BG International Limited has no exploration assets in Honduras.”

For his part, energy secretary Erick Tejada said that any work in La Mosquitia would be preceded by prior consultation of communities in the area.

“The government of the republic, through the SEN, will not carry out any exploratory action, much less exploitation (of possible oil resources) without adequate consultation with the respective communities and territorial councils; therefore, we have already met with mayors from various municipalities,” the official said in a statement.

He added that a review of documents and talks with stakeholders in La Mosquitia reveal that public engagement and environmental studies were – according to Tejada – not carried out properly. 

In Central America, Belize and Guatemala are the only countries with oil production.