Petrobras Invests $1 Billion in Bolivia to Increase Natural Gas Production

Petrobras and YPFB, the Bolivian national oil company, signed a joint announcement in La Paz foreseeing new investments to increase natural gas production in Bolivia. In collaboration with its partners, the company estimates it may invest $750 million to $1 billion, depending on the results achieved in new area exploration.

The document was signed during a ceremony held at the Quemado Palace. Presidents Evo Morales, from Bolivia, and Luiz Inácio Lula da Silva, from Brazil, among other authorities, attended the event. The companies also signed an agreement for technical human resource qualification for Bolivia’s oil industry. General lines for joint exploration project execution were defined in the Carohuaicho, Astillero, and Cedro areas, with the possibility of the incorporation of a Semi-Public Corporation.

In another agreement, Petrobras and YPFB defined that for volumes delivered to the internal market above 18% of the production derived from new projects, there will be a 50% price guarantee relative to the exports price.

Aiming at boosting the natural gas production volumes, to supply both internal and external markets, Petrobras and its partners plan to invest $750 million to $1 billion in Bolivia, in the exploitation of the fields in development and in exploring and exploiting new areas, as per the normative and economic conditions that are currently in effect.