Gazprom and YPFB sign Supplement to Memorandum of Understanding
Today at the Gazprom Headquarters Alexey Miller, Chairman of the Company’s Management Committee and Oscar Coca Antezana, Minister of Hydrocarbons and Energy of Bolivia signed a Supplement to the Memorandum of Understanding between Gazprom and the Bolivian state-owned company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) as of February 21, 2007.
The parties also noted with satisfaction that the Memorandum on shaping
the General Scheme for the Bolivian gas industry development until 2030 was signed on February 5, 2009 by Gazprom, YPFB and VNIIGAZ. It was agreed to sign the relevant contract in the near future.
“Gazprom and Bolivia have confirmed once again their mutual aspiration to develop strategic cooperation in the oil and gas sector. I am sure that the partnership will be mutually beneficial: being in a vein of the Gazprom strategy targeted at expanding its presence on new foreign markets, it will facilitate an accelerated social and economic development of Bolivia,” said Alexey Miller.
Bolivia’s proven natural gas reserves average 0.77 trillion cubic meters, oil – 60 million tons. The total natural gas reserves, both proven and probable are estimated at 1.5 trillion cubic meters. The major hydrocarbon reserves are concentrated in the Tarija area, namely, the four largest fields – Margarita, San Alberto, Itau and Sabalo (over 80 per cent of the whole total). Other perspective gas-bearing provinces are Santa-Cruz (10.6 per cent) and Cochabamba (2.5 per cent).
In the oil and gas sector the state interests are represented by YPFB that carries out the fiscal functions and has by law the exclusive right to participate on behalf of the state in oil and gas projects and sell hydrocarbons. Bolivia is the major natural gas exporter to Brazil and Argentina.
In February 2007 Gazprom and YPFB signed the Memorandum of Understanding. The document envisages cooperation in the Bolivian hydrocarbon exploration and development sector, studies the possibilities for entering into infrastructure projects including LNG production, as well as the possibility to improve qualification and train oil and gas sector specialists.
In September 2008 Gazprom, YPFB and Total E&P Bolivia signed the tripartite Memorandum stipulating the conduct of joint evaluation of the Azero Block and representing a new step forward to establishing the joint venture for hydrocarbon production in Bolivia.
Furthermore, in September 2008 Gazprom, Petroleos de Venezuela S.A. and YPFB signed the Memorandum of Understanding to explore the possibility of the Company’s entry in the shareholding structure of Petroandina.