BG Could Make New Investments in 4-5 Years
UK gas company BG (NYSE: BRG) could decide in 4-5 years whether to make new investments in Bolivia provided the country's state oil company YPFB guarantees returns, BG Southern Cone corporate affairs director Jose Ponte told BNamericas.
"The [E&P] contract with Bolivia has given us certain comfort in relation to recovering investments already made," he said. "Future investments will depend on conditions because YPFB will be the seller and transporter of all products there."
The E&P contract was negotiated with YPFB in October and stipulates new investments will take place if projects are feasible.
"This will be a case-by-case issue," Ponte said. "YPFB will have to say what the market projects and gas transport conditions are and each company will appraise them."
Talks over specific projects have not started.
"We may start talking now, but this [whether to invest] is something that will be decided in 4-5 years," he said.
Bolivia is an important country for BG's international strategy because of gas demand in Brazil, Argentina and Chile.
"We will try to work together with the Bolivian government to reach a situation in which investment in the country is possible," Ponte said. "One of the projects is to transport more gas to Brazil."
In Bolivia, BG has 100% of two producing gas fields, La Vertiente and Margarita. The company also has interests in another three areas where hydrocarbons have been discovered - Palo Marcado, Ibibobo and Itau - as well as in two exploration blocks, Caipipendi and Charagua.
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