Minister: E&P Investment to Reach US$3.4bn in 2007-10


Bolivia's hydrocarbons minister Carlos Villegas estimates investment in Bolivia's E&P sector will reach US$3.4bn in 2007-10, government news agency ABI reported.

The investment includes US$339mn and US$495mn for the San Alberto and San Antonio fields respectively, both of which are operated by Brazil's federal energy company Petrobras (NYSE: PBR).

The two fields supply Brazil's market with gas through the 3,200km Brazil-Bolivia (B2B) gas pipeline that has 30Mm3/d capacity.

The US$3.4bn also includes US$592mn for the Itau field as well as US$1.03bn for the Incahuasi field, both operated by French oil firm Total (NYSE: TOT).

The prospective Itau and Incahuasi megafields are being developed to supply Argentina's market.

UK gas company BG's (NYSE: BG) Margarita field will receive US$905mn investment in the period, according to Villegas, who did not detail other investments.

The new contractual terms came into effect November 1, although their terms will not be made public until completion of the ongoing congressional approval process.

Bolivia's government renegotiated contracts as part of the hydrocarbons nationalization process launched by President Evo Morales in May. Critics projected the move would block foreign investment in the country.

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.