Bolivia gas output forecast to fall for third consecutive year

Natural gas production in Bolivia this year is projected to average 31.9Mm3/d compared with 36.3Mm3/d, 41.3Mm3/d and 45.1Mm3/d in 2023, 2022 and 2021, respectively.

The information was provided during a presentation by Armin Dorgathen, head of state hydrocarbons company YPFB.

Dorgathen pinned hopes on the upstream reactivation plan launched in 2021 to reverse the decline that includes 42 exploration wells, 20 of which were drilled in 2023, he said.

The executive added that five geological and geophysical projects were carried out last year.

One criticism of the government’s handling of the upstream sector has been that despite announcement after announcement, there has been no follow through on execution, which Dorgathen looked to dispel by showcasing projects that have been completed or are underway.

YPFB executed 81% of companywide investment in 2023, the highest figure in six years, according to the state operator, with nearly 70% or US$364mn allocated to exploration and production. In 2024, US$277mn has been budgeted for the upstream.

Authorities also expect a US$700mn upstream boost from private investment in the coming years.

Source: Hydrocarbons and energy ministry

Fellow presenter hydrocarbons and energy minister Franklin Molina Ortiz pointed to proposed upstream regulatory changes that are being drafted and evaluated to attract investment and optimize procurement.

“The hydrocarbons sector today requires a structural change in the country, we need to change the rules of the game so there is greater investment,” Molina said.

Nevertheless, Bolivia faces an uphill battle, challenged by the statist nature of the sector and uncertainty related to exports, among other factors.

In recent days, Argentine federal energy department officials reiterated plans to end imports of Bolivian gas.

Also read Bolivia’s hydrocarbons sector requires ‘complete reengineering’ and Is Bolivia’s natural gas cycle coming to an end?