Senate authorizes YPFB to sign a contract with Canacol that enables an investment of more than $100 million

The following is a machine translation of a Ministry of Hydrocarbons and Energy release

The Senate approved the bill that authorizes the state-owned company YPFB to sign the oil services contract with the company Canacol Energy Colombia SAS, which will facilitate an investment of more than $100 million in exploration and exploitation in the Tita – Techi area, located in the department of Santa Cruz.

Canacol Energy Colombia SAS (Bolivia Branch) will evaluate the hydrocarbon potential of the area reserved in favor of YPFB, specifically in the municipality of Charagua Iyambae, which belongs to the Cordillera province, in the department of Santa Cruz.

The oil services contract establishes that recoverable resources are estimated at 133.70 trillion cubic feet (BCF) and 1.4 million barrels (MMBbl). In addition, the development of this project has the potential to generate oil revenues of US$553 million.

Other areas that already have legislative authorization for the signing of oil contracts between YPFB and Canacol Energy are Ovai, Florida Este and Arenales, all located in Santa Cruz. The authorization, by law, for the Tita Techi area completes the exploratory projects that the Colombian company has in the country.

Altogether, the projected investments in exploration and exploitation in the four areas amount to more than US$270 million, and oil revenues of more than US$1.3 billion are expected. These projects are part of the Upstream Reactivation Plan 2021-2023 (PRU).

The Colombian company has extensive experience in the exploration and production of natural gas, which makes it a strategic partner for YPFB in the search for new hydrocarbon resources in Bolivia.

The Colombian oil company's incursion into Bolivia is part of the national energy policy and the PRU, which includes investments by YPFB and encourages the participation of private companies in the exploration and exploitation of hydrocarbon resources.