Brazil, Oil Companies Concerned About Bolivian NatGas Investments
Investments are needed to expand natural gas production and the capacity of the 3,000km Bolivia-Brazil natural gas pipeline (B2B) to increase supply, Agencia Estado news service quoted Brazil's mines and energy deputy minister Nelson Hubner as saying.
Bolivia exports some 24Mm3/d of gas to Brazil, or 80% of B2B capacity, and about 40% of current demand. By 2011, natural gas consumption is expected to top 100Mm3/d.
In addition, investment is needed in Bolivia to expand production, the paper quoted Brazil's federal energy company Petrobras CFO Almir Barbassa as saying.
Petrobras (NYSE: PBR) cancelled most of its investment plans in Bolivia including B2B expansion following the country's May 1 nationalization decree.
Bolivia's VP Alvaro Linera agreed new investments in production are needed to increase supply, including the extra 20Mm3/d increase in exports to Argentina that forms part of a new supply contract, Bolivia's state news agency ABI reported.
Linera called on companies to invest in new production and said demand for increased output is guaranteed. Investment has dropped since 2001 due to a lack of incentives by past governments in La Paz, ABI quoted Linera as saying.
Before nationalization, Petrobras was discussing a US$5bn investment program over several years to increase output, train personnel and boost Bolivian demand for natural gas.
Indeed, 2006 could experience a sharp decline in investments, according to the Bolivian chamber of hydrocarbons (CBH). Oil and gas industry investments are forecast to reach US$60mn-80mn this year, down as much as 70% from 2005.
E&P investments in Bolivia have been declining since 1998, when investments peaked at around US$600mn, according to CBH.
Visit BNamericas to access our real-time news reports, 7-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally