The delegation from Gazprom International, PJSC Gazprom’s specialized company for implementing hydrocarbon prospecting, exploration and development projects outside Russia, headed by its Managing Director Andrey Fick, participated in the 6th International Gas and Petroleum Congress 2016 held in Santa Cruz de la Sierra, Bolivia.
The Gas and Petroleum Congress is one of the key annual industry events in Latin America. It was opened by Alvaro Marcelo Garcia Linera, Vice President of the Plurinational State of Bolivia. The forum was attended by more than 900 delegates from around the world, including the Secretary General of Gas Exporting Countries, Seyed Mohammad Hossein Adeli, the Secretary General of the International Gas Union, Pål Rasmussen, and the representatives of the leading national oil and gas companies from Argentina (YPF), China (CNPC), Ecuador (Petroamazonas), Venezuela (PDVSA), Brazil (Petrobras), as well as representatives of the expert community and regional professional associations. During the congress, the top management of the Bolivian fuel and energy complex presented its vision of the country’s energy sector development over the next decade.
On the invitation of the Minister of Hydrocarbons and Energy of Bolivia, Luis Alberto Sanchez, the delegation of Gazprom International took part in the retreat at the Incahuasi field that is being developed by a consortium of companies: Total E&P Bolivie (operator, 50%), Gazprom International (20%), TecPetrol de Bolivia (20%), YPFB Chaco (10%). The field is planned to be brought into operation in the 3rd quarter of 2016. During the meeting, the participants of the consortium and the management of the Bolivian fuel and energy complex discussed the current situation on the development of the field, outlined the strategy of coordination of the pre-production process, and also examined the production facilities under construction.
In addition, on the sidelines of the Congress, a business meeting was held with Guillermo Acha, Acting Executive President of the Bolivian state oil company, Yacimientos Petroliferos Fiscales Bolivianos (YPFB), during which the parties discussed the implementation of promising joint projects.
“This is Gazprom’s first project on gas production in Bolivia. We are honoured to take part in this work and make a contribution to the development of the economy of your country,” said Andrey Fick to his Bolivian colleagues at the end of his visit.
Cooperation with Bolivia is based on the Memorandum of Understanding signed by PJSC Gazprom and YPFB on 21st February 2007. Under this document, partners are to develop cooperation in the fields of production, transportation and processing of natural gas, as well as scientific and technological cooperation. As part of the international consortium, Gazprom International participates in the development of the Incahuasi field located within the Bolivian blocks of Ipati and Aquio.
The first phase of the development of the Incahuasi field foresees a production rate of 6.5 million cubic metres of gas per day.
In addition, Gazprom International and Total E&P Bolivie are working cooperatively on the exploration of the Azero block in the country’s Central Pre-Andean oil and gas bearing basin. Gazprom and Total E&P Bolivie both have a 50% participating interest in the project at the stage of geological exploration as partners.
In February 2016, Gazprom International and the Ministry of Hydrocarbons and Energy of Bolivia signed an agreement on updating the Gas Master Plan for the Bolivian gas industry until 2040. The document sets out the areas for the development of the country’s fuel and energy sector in the field of exploration, production and processing of hydrocarbon raw material, as well as its transportation and sale.
This June, Gazprom International and YPFB signed an Agreement for the exploration of the promising blocks of La Ceiba, Vitiaqua and Madidi.
Bolivia ranks third in South America in production of hydrocarbons. It produces over 20 billion cubic metres of natural gas annually. Most of the resources produced is exported to Brazil and Argentina.
The proven gas reserves in this Latin American country are estimated at about 11 trillion cubic feet (more than 300 billion cubic metres).