Bolivia plans to create a national fund for attracting investment in exploration projects within the country, reports local media, citing the Minister of Hydrocarbons and Energy Luis Alberto Sanchez.
According to the Minister, the authorised capital of the fund will total over $3.5 billion, $988 million of which will be utilised in the first stage between 2015 and 2020, and the remainder ($2.5 billion) in 2020 to 2025.
Over the next 10 years, the country’s oil and gas revenues are projected to be $62 billion, said Luis Alberto Sanchez. Applying the fund resources to stimulate geological exploration works and discover new hydrocarbon fields could increase this figure by a third.
The head of the energy department notes that establishment of the investment fund must be approved by the Bolivian National Congress by the end of this year.
According to Bolivian national oil and gas corporation, Yacimientos Petroliferos Fiscales Bolivianos (YPFB), the company intends to invest $5 billion over the next six years in exploration projects to increase hydrocarbon reserves to 7.4 trillion cubic feet (209.5 billion m3).
Bolivia places third in South America in terms of hydrocarbon production volume. Each year this republic produces over 20 billion m3 of natural gas, proven reserves of which are estimated at 10.5 trillion cubic feet (296 billion m3); oil and condensate at 211.4 million barrels (28 million tonnes).
PJSC Gazprom is collaborating with YPFB on the basis of a Memorandum of Understanding signed by the companies in 2007. Gazprom’s interests in Bolivian projects are represented by Gazprom International, the concern’s unified specialised company for implementing upstream-projects overseas.
Currently, Gazprom International is jointly implementing a project with its partners for the development of the Incahuasi field located within the boundaries of the Ipati and Aquio blocks and is also conducting exploration works in the Azero block in the Central Pre-Andean Oil and Gas-Bearing Basin of the country.