Bolivia seeks to boost exploration and exploitation activities in 3 regions that could generate around $1.7 billion in oil revenue

This MHE release was published using machine translation.

UCOM-MHE-07-13-2022.- The Minister of Hydrocarbons and Energy, Franklin Molina Ortiz, reported that this Wednesday 5 preliminary bills were submitted to the Legislative Power to request authorization for the signing of five new Oil Services Contracts ( CSP) that make possible the exploration and exploitation of hydrocarbons in the areas of the Pie de Monte de Santa Cruz, the Chuquisaca Chaco and the Tarijeño Chaco. "These regions have significant gas and oil potential (...) that would allow the generation of around US$1.7 billion in oil income," the authority said at a press conference.

Molina pointed out that these new contracts are part of the Upstream Reactivation Plan carried out by the Bolivian Fiscal Oilfields (YPFB), with the aim of attracting new investments to boost the hydrocarbon sector and thus stabilize and increase production and replenish reserves.

"For these projects, an investment of US$582.2 million is expected, which would allow us to carry out exploration and exploitation activities in the areas of Ovai, Florida Este (Santa Cruz), Carandaiti (Chuquisaca), Sayurenda and Yuarenda (Tarija)", the minister stated.

Areas and potentials

• Ovai and East Florida

The Ovai and Florida Este areas, in Santa Cruz, have an exploratory potential close to 120 trillion cubic feet (BCF) of gas, which, if positive, would represent an oil revenue of approximately US$360 million. These areas have been evaluated by the company Canacol Energy Colombia SAS, which would become a new operator in Bolivia.

• Carandaiti

In the Carandaiti area, which is located between Chuquisaca, Santa Cruz and Tarija, 5 structures have been studied that have an exploratory potential of 332 BCF of gas and 4.5 million barrels of oil (MMBbls) of oil and that would represent approximately $ US567 million of oil income in case of successful projects. Carandaití was evaluated by Vintage Petroleum Boliviana Ltda.

• Sayurenda and Yuarenda

In the Sayurenda area, in Tarija, 4 structures were studied that have an exploratory potential of 173 BCF of gas and 3 MMBbls of oil. In the event that it is a successful project, it is estimated that it will generate an oil revenue of US$130.7 million.

While in Yuarenda a potential of 170 BCF of gas and 4 MMBbls of oil was identified, which if successful would generate approximately US$649.2 million in oil revenue.

Sayuarenda and Yuarenda were also evaluated by the company Vintage Petroleum Boliviana Ltda.

“This is good news for the country because it shows that the upstream reactivation is a reality. Likewise, these projects will generate jobs, helping the economic reactivation in the country,” said Minister Molina.

By mandate of President Luis Arce, the Ministry of Hydrocarbons and Energy promotes regulatory projects that make exploration and exploitation activities viable in order to strengthen the country's energy security.