Agreement on geological exploration in Bolivia signed between Gazprom and YPFB
On March 17–18, led by Stanislav Tsygankov, Head of the Gazprom International Business Department, a Gazprom delegation paid a working visit to Bolivia.
Within the visit the delegation held negotiations with Santos Ramirez, President of the Bolivian state-owned petroleum company YPFB. The parties discussed the prospects for bilateral cooperation in the oil and gas area, as well as issues concerning further joint activities.
In the presence of Bolivian President Evo Morales Gazprom and YPFB signed an Agreement on geological exploration in Bolivia. Pursuant to the Agreement, exploration will be carried out at blocks Sunchal, Azero and Carohuaicho.
In his welcoming speech President Evo Morales highly appreciated the potential of cooperation between Gazprom and YPFB and expressed confidence that it would be successfully extended in the future.
Stanislav Tsygankov underscored that Gazprom represented a vertically integrated company operating in the oil and electric power industries, which, in future, could become the areas of interaction between both parties.
In the course of the visit the Gazprom delegation conducted negotiations dedicated to possible cooperation in the region with Repsol, Tecpetrol companies.
Bolivia is the third largest country in Latin America after Venezuela and Trinidad & Tobago in terms of natural gas reserves (1.5 tcm) that are characterized by high gas-bearing potential.
Bolivia’s major gas reserves are located in four large fields, namely Margarita, San Alberto, Sabalo and Itau, discovered in southeastern Bolivia.
Bolivia is the main supplier of natural gas to such countries as Brazil and Argentina.
The interests of the state in the oil and gas sector are represented by YPFB that holds the exclusive right to participate on behalf of the state in oil and gas projects and to sell hydrocarbons inside and outside the country.
In February 2007, Gazprom and YFPB inked a Memorandum of Understanding. The Memorandum envisages promoting cooperation in the Bolivian hydrocarbon exploration and development sector, studying the possibility to jointly get involved in infrastructure projects including LNG production as well as the possibility to improve qualification and training of oil and gas sector specialists.
The blocks selected by Gazprom (Sunchal, Azero and Carohuaicho) are located in southeastern Bolivia in the Subandino Sur oil and gas basin where oil and gas fields have traditionally been sought for. According to expert estimates, the gas- bearing potential of these blocks amounts to 300 bcm.