YPFB developing 56 projects to boost hydrocarbon production

This YPFB statement was translated from Spanish by an automated system

In a speech to Bolivians, President Luis Arce addressed the decline in hydrocarbon production, which is leading to increased fuel imports in Bolivia and a lack of dollars. However, YPFB is developing the Upstream Reactivation Plan (PRU) with 56 exploratory projects.

"The depletion of wells has not been replaced by the exploration and discovery of new oil and gas fields to replace the production that was running out," said Arce, referring to past administrations.

The president mentioned the fields Margarita, Incahuasi, Sábalo, San Alberto and Yapacaní, which are those with the highest gas production and showed the progressive decline since after the nationalization of hydrocarbons, the government of that time did not invest in exploration.

“This is the story of all oil fields. Here we also have Margarita, Huacaya, which had its best production around 2016, this field generated 6.559 billion cubic meters and now 4,000. It is in decline.”

Regarding the supervised production of oil and condensate, it has decreased by 54% since 2014, which means that the country is not producing enough fuel and is importing it, with increasing demand.

In 2014, Bolivia produced 18.6 million barrels of oil per year, a figure that fell to 8.6 million in 2023. Regarding gas, the drop is from 21.766 billion cubic liters in 2012 to 13.122 billion in 2023, or 40%.

In this regard, the PRU seeks to ensure that the crude oil and liquids produced are refined by YPFB for the production of diesel and gasoline.

President Arce made it clear that the lack of exploration caused this decline in production and reduced the country's capacity to export hydrocarbons, which reduces income in dollars and, consequently, the foreign currency received by Bolivia is invested in fuel subsidies.

“There was a significant oversight in the Nationalization of Hydrocarbons (…). We are living with the consequences of what was not done seven years ago.”

However, YPFB's Upstream Reactivation Plan already has 18 positive results. It began in 2021