Bolivian Government commits US $ 2,514 million for hydrocarbons in Chuquisaca

Thursday, July 26, 2018

This press release from Bolivia's Ministry of Hydrocarbons was published using an automatic translation system.

On Thursday morning, at the Government Palace, a meeting was held between the national government and authorities of the department of Chuquisaca, in which the total investment of $ 2,514 million in hydrocarbons exploration and exploitation activities was agreed upon. Chuquisaca

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"Now, with this agreement between the department of Chuquisaca and the national government, everything that was committed and new investments are made viable, US $ 1,290 million was planned, and in this last trip, making management, Gazprom joins the investment in the department. of Chuquisaca with $ us1.224 million ... In total today we signed to invest $ us2.514 million, "said President Evo Morales at a press conference accompanied by the governor of Chuquisaca, Esteban Urquizo; the mayor of Sucre, Iván Arciénega; among other authorities.

For his part, the Minister of Hydrocarbons, Luis Sanchez, who also participated in the meeting, said on Patria Nueva radio that "with the investment of $ us2.514 million are reactivated immediately, all activities that were somehow paralyzed" .

These investments will make it possible for Chuquisaca to receive the next few years between US $ 130 million, obviously, because production will increase and because prices (of oil) tend to rise; then Chuquisaca will have a significant increase in revenues from Petroleum Revenue. "The authority recalled that in 2000 the Petroleum Income of Chuquisaca was in the order of $ us5 million, in 2006 it rose to $ us53 million, in 2014 they surpassed the $ us245 million and, last year, coming out of the crisis due to the international fall in oil prices, the $ us100 million was bordered.

Sánchez explained that between 2006 and 2017 $ 887 million were invested and that between 2018-2021 $ 1,290 million will be invested in Chuquisaca in the exploratory projects developed in areas located in the department of Chuquisaca: Sipotindi, with resources of 0.33 TCF 's; Illinchupa, with 1.5 TCF's, Boicobo Norte and Boicobo Sur, both with 1.56 TCF's; Yapucaiti with approximately 2 TCF's, Itacaray with 0.86 TCF's; Iñau with 0.76 TCF's; Ingre with 0.87 TCF's and Saucemayu with 0.71 TCF's, which already have a schedule of activities for the next 4 years. Some of these projects are at the level of studies, others with magnetotelluric prospection, conceptual engineering, road and ironing and the beginning of exploratory drilling. On the other hand, Sánchez said that YPFB and Gazprom are negotiating the Exploration and Exploitation Contract for the Vitiacua area, which has a potential of 6.2 TCF, and which is expected to be protocolized in October or November of this year. management, "from that moment investments would begin for the exploration and development of the Vitiacua field, which in the entire phase of the project has a committed investment of $ 1,224 million."

The minister informed that the reactivation will involve "this year the execution of $ us233.6 million, 2019, $ us445.9 million, 2020, $ us326.9 million, and 2021, $ us284 million, which give $ us1.290 "

"With these investments, we project that Oil Revenue will grow significantly, all this increase has not only been possible due to the rise in the price of gas, but also because of the heavy investments." This important step is thanks to the agreement reached between President Evo Morales and the authorities of the department of Chuquisaca who are firmly committed to the generation of economic resources through hydrocarbon activity, "said the authority.

Regarding the agreement, the mayor of Sucre, Iván Arcienega, said: "This great agreement implies the harmonious equitable development of the entire Bolivian homeland taking into account that giron home to all the people of Chuquisaca and all Chuquisaca, this represents generation of employment and integral development ".

For his part, the Governor of Chuquisaca, Esteban Urquizo, said: "As chuquisaqueños, as a department (we are) grateful for the great investment in the hydrocarbons area, we deeply thank our brother president Evo Morales for this decision. development, employment for the region, means the process of change ".

In the meeting held at the Government Palace, the Governor, Esteban Urquizo, participated by Chuquisaca; the mayor of Sucre, Iván Arcienega, the president of the Federation of Private Employers of Chuquisaca, Teresa Dalenz; the representative of the Association of Municipalities of Chuquisaca, Filomeno Cruz; the president of the Parliamentary Brigade of Chuquisaca, Elmar Callejas; the President of the Departmental Legislative Assembly, José Ortiz; the Executive Secretary of the Single Federation of Native Peasant Workers of Chuquisaca; Omar Barrón, among other authorities.