From 2016 through 2025, the Bolivian national oil and gas company, Yacimientos Petroliferos Fiscales Bolivianos (YPFB), plans on investing $6.7 billion in the domestic gas and chemical industry. The head of the company, Luis Guillermo Acha, spoke to the media about it at the Investing in the New Bolivia Summit in New York on 26 October, local media report.
According to Acha, the planned investment will be spent on the construction of several gas and petrochemical facilities and factories for the production of liquefied hydrocarbons. In particular, this concerns the commissioning of plants for the production of propylene and polypropylene, ammonia and urea, propane, butane and other refined petroleum products, as well as gas derived from several major domestic fields.
At the same time, Acha noted that total investments in Bolivia’s petrochemical industry from 2006 to the present totalled almost $2 billion. Industrialising the gas industry and increasing hydrocarbon reserves are a national priority for this Latin American republic.
In late August, Bolivia's Minister of Hydrocarbons and Energy, Luis Alberto Sanchez, announced the establishment of a national fund for investments in exploration projects in the country. According to the minister, the fund’s authorised capital exceeds $3.5 billion, $988 million of which is to be disbursed in the first phase from 2015 to 2020, while the remaining funds, $2.5 billion, are to be spent from 2020 through 2025. The establishment of the fund must be approved by the National Congress of Bolivia before the end of this year.
YPFB is the national oil and gas corporation of Bolivia. The new head of YPFB, Luis Guillermo Acha, who replaced Carlos Villegas, who died following a lengthy illness in January 2015, was sworn in by the President of Bolivia in January of this year.
PJSC Gazprom has been working with YPFB on the basis of a memorandum of understanding signed by the companies in 2007. Gazprom's interests in the Bolivian project are represented by Gazprom International, the sole specialized operator for the group's international upstream projects.
Bolivia is the third-largest national producer of hydrocarbons in South America. The country produces more than 20 billion cubic metres of natural gas per year, with proven reserves that, at the end of 2013, were estimated at 10.5 trillion cubic feet (297 billion cubic metres), and oil and condensate estimated at 211.4 million barrels (28 million tonnes).