LA PAZ – A pair of state energy companies – Bolivia’s YPFB and Argentina’s YPF – signed an agreement on Thursday to study the potential of an oil and gas reservoir in Bolivia.
If the hydrocarbon exploration and development potential of this 45,750-hectare (177-square-mile) reservoir is confirmed, roughly $658 million could be invested in the area.
Bolivian President Evo Morales attended the signing ceremony in Sucre, a city in the southern province of Chuquisaca that is Bolivia’s constitutional capital.
The agreement is aimed at evaluating the hydrocarbon potential of the Sauce Mayu area, located in Chuquisaca, YPFB said in a statement.
“658 million is to be invested in the coming years based on the signing of this study agreement,” YPFB chief Oscar Barriga said.
“Upon conclusion of the second half of 2019, the idea is to continue negotiations aimed at signing a hydrocarbons-services contract for the area,” he added.
“The exploration assessment to be carried out will allow a determination of hydrocarbon prospectivity at deep levels,” he said, adding that some $70 million is to be invested in an exploratory well.
If that well is successful, an additional $588 million will be invested in developing the area, Barriga said.
For his part, Bolivian Hydrocarbons Minister Luis Alberto Sanchez said Sauce Mayu was a highly important area for the hydrocarbon industry with natural gas reserves estimated at 2.7 trillion cubic feet and oil reserves estimated at 39.6 million barrels.