Bolivia's state-owned oil company YPF Bolivianos said Wednesday that it has signed oil and gas exploration agreements with Brazil's Petrobras and Spain's Repsol.
The two companies will explore six areas in Bolivia's southern Tarija region where most of the country's gas is produced, said YPF Bolivianos, according to a report on the website of the government's official news agency, ABI.
Petrobras will carry out exploration work in the Astillero and Sunchal areas, both in a producing zone, and in the frontier area of San Telmo, YPF Bolivianos said. Repsol has agreed to explore the Capiguazuti and Rio Saldo areas, both in a producing zone, and in the frontier area of Yuchan.
YPF Bolivianos did not give details on spending, seismic or drilling requirement of the accords. Petrobras and Repsol press offices were not available for comment.
Bolivia has an estimated 710 billion cubic meters (21.1 Tcf) of gas, the second largest natural gas reserves in South America after Venezuela.
Since taking control of YPF Bolivianos in 2006, the government has required YPF, Petrobras, Total and other companies in the country to conduct new exploration work as a condition of their gas production licenses.
Since 2006, gas investment in Bolivia has plunged, resulting in shortages. The government cut subsidies on natural gas in December, resulting in a 78% surge in prices and widespread protests.
Brazil and Argentina are the two main markets for Bolivian natural gas. Petrobras has the right to import up to 31 million cu m/d of natural gas into Brazil and Argentina has the right to import 7 million cu m/d. Both countries regularly import far less, and Brazil, which gets up to half its natural gas from Bolivia, has moved since 2006 to secure alternate sources of supply using liquefied natural gas terminals.
