Draft Law for the Modification of Exploration Contracts is approved in the Bolivian Chamber of Deputies

Bizar Male

This Ministry of Hydrocarbons and Energies release was published using machine translation.

UCOM-MHE-05-14-2021.- The Ministry of Hydrocarbons and Energies obtained the approval of the Chamber of Deputies of draft Law No. 151 / 2020-2021, corresponding to the area of Charagua located in the department of Santa Cruz.

This project modifies Law 858 of November 28, 2016, which authorized Yacimiento Petroliferos Fiscales Bolivianos (YPFB) to sign a contract with the Argentine oil company YPF for exploration activities in the Charagua area. The contract was signed on January 16, 2017 and was endorsed by Law 955 of June 9 of that same year.

Before the plenary session of the Chamber of Deputies, the Minister of Hydrocarbons and Energies, Franklin Molina, explained that in the first exploratory phase 3D seismic studies were carried out with good results, after consulting and compensating the communities surrounding the work area. of the respective environmental license.

The second exploratory phase involves the drilling of wells with the anticipation of finding a reservoir estimated at 2.1 trillion cubic feet (TCF) of natural gas. YPFB Chaco SA and YPF de Argentina agreed to face this phase jointly and began in 2018 the steps to adjust the contract.

In this sense, Article 2 of the draft Law 151 / 2020-2021 establishes that “the company YPF Exploración & Producción de Hidrocarburos de Bolivia SA assigns 40% of its total participation, rights and obligations of the indicated contract in favor of YPFB Chaco SA, maintaining 60% of its participation in the contract ”.

“YPFB at no time has risk during the exploration process, that is to say that this company, both YPF and YPFB Chaco SA, assumes all the cost and risk of exploration,” Molina clarified.

Once commerciality and exploratory success in the Charagua area is declared, YPFB will be authorized to create a Mixed Economy Company (SAM) as follows: 51% for YPFB, 29.4 for YPF and 19, 6 for YPFB Chaco SA

“This will allow us a replacement of reserves of 2.1 TCF, the income that is intended to be received is 9,653 million dollars from oil rent, an increase in production of 6.1 million cubic meters per day of natural gas (the half of national consumption) ”, indicated the highest authority of the Bolivian energy sector.

Bill 151 / 2020-2021, which has the technical, legal and economic documentation for its viability, passed to the Senate for review.

“Bolivia cannot afford to lose a single day exploring. We, as YPFB, are working on different exploratory projects, there are approximately 17 projects that we have planned this year ”, Molina remarked.

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