Gazprom delegation visits Bolivia
A Gazprom delegation headed by Deputy Chairman of Management Committee of the company Alexander Medvedev paid a visit to Bolivia on 18 September, 2008.
In the framework of the visit Alexander Medvedev met President of the Bolivian state-owned oil and gas company YPFB Santos Ramirez. The parties discussed the state of current projects, as well as scientific and technical cooperation and personnel training. Besides, meetings with representatives of other oil and gas companies operating in Bolivia were held.
The negotiations resulted in the signing by OAO Gazprom, YPFB, and Total EP Bolivia, in presence of Bolivian President Evo Morales , of a trilateral Memorandum which foresees the joint assessment of the Azero block and marks another step forward to the creation of a new joint venture to produce hydrocarbons in Bolivia.
During the visit Alexander Medvedev was received by Bolivian President Evo Morales, who praised the high dynamic of cooperation between Gazprom and YPFB and displayed major interest in joint implementation on the territory of Bolivia of integrated projects that comprise both upstream and midstream of hydrocarbons.
Bolivia occupies the third place in Latin America after Venezuela and Trinidad and Tobago by natural gas reserves (1.5 trillion cubic meters) and has a high gas-bearing potential.
Major Bolivian gas reserves are accumulated in four biggest fields – Margarita, San Alberto, Sabalo, and Itau in the southeast of the country.
Bolivia is the main natural gas supplier to such countries, as Brazil and Argentina.
In the oil and gas industry the interests of the state are represented by the YPFB Company, which enjoys the exclusive right to participate on behalf of the government in oil and gas projects and sell hydrocarbons both within and outside the country.
In February 2007 OAO Gazprom and YPFB signed a Memorandum of understanding. The document calls for cooperation in the field of exploration and developing hydrocarbons in Bolivia, review of possibilities to join infrastructure projects also in LNG production, and the possibility to train specialists for the oil and gas industry.
The blocks selected by OAO Gazprom experts (Sunchal, Azero, and Carohuaicho) are located in southeastern Bolivia within the gas-bearing Subandino Sur basin in the traditional search area for oil and gas. Experts estimate the gas-bearing potential of the deposits at up to 300 billion cubic meters.