Canacol invests US$94mn in Bolivia for the exploration and exploitation of 7 gas wells

By YPFB

This is a machine translation of the original press release issued in Spanish

La Paz, March 7, 2022 (AN-YPFB). – With an investment of US$94 million for the exploration and exploitation of 7 wells in the country, Yacimientos Petroliferos Fiscales Bolivianos (YPFB) signed the minutes of closing the negotiation of the oil services contract for the Arenales area, located in the municipalities Cruceños from Charagua and Cabezas, with Canacol Energy Colombia S.A,S., Bolivian branch.

“This signature implies an important investment that considers the drilling of seven wells, one of them exploratory. This is the year of exploration and economic reactivation of the country. If everything goes well and the exploratory well is positive, an oil revenue of US$423.7 million and an increase in natural gas production of 21 million cubic feet per day (MMcfd) will be achieved”, explained the President of YPFB, Armin Dorgathen.

Exploratory activities are projected for 2023 and the start of production for 2025. Within the estimates, 141.3 billion cubic feet (BCF) of gas are projected.

"We have a new operator in Bolivia and a new partner that will allow us to reactivate Upstream and, in addition, demonstrate confidence in the country for investments," added Dorgathen.

For the signing of the agreement, which took place in the offices of the state oil company at the Government headquarters, Jhamil Pablo Medinaceli Reyes, representative of the international company, was present along with other executives of that company. Alejandro Jotayan, director of the Conosur de Canacol, also participated online.

Canacol Energy Colombia S.A.S. Sucursal Bolivia becomes a new participant in the hydrocarbon sector in the country since, at present, it has two contracts in the approval process in the Plurinational Legislative Assembly (Oval and East Florida). In addition, it is the largest independent onshore conventional natural gas exploration and production company in Colombia.