LA PAZ – A new natural gas well that began production Monday in the southern region of Tarija is expected to contribute $90 million to the public coffers over the next seven years, Bolivian officials said.
President Evo Morales traveled to Villamontes, Tarija, for the inauguration of the Sabalo 6 well, operated by Brazil’s Petrobras.
The well will produce 28 million cu. ft. per day of natural gas, according to state petroleum company YPFB.
“Production continues increasing, that guarantees not only our internal market, but also our export commitments,” Morales said.
Sabalo 6 will generate $20 million in royalties, taxes and profit-participation for the Bolivian treasury in its first full year of production, YPFB chief executive Oscar Barriga said.
Drilling at the site began in April 2016 and production testing started a year later.