Bolivia's gas reserves are worth US$90bn, says minister

Bolivia's 12.5Tf3 of proven and probable natural gas reserves are worth close to US$90bn, according to hydrocarbons minister Luis Alberto Sánchez.

Sánchez made the comment following an update of the country's reserves by Sproule.

The minister heralded the new numbers, highlighting that the reserves guarantee domestic supply and will help Bolivia honor its export pledges with Argentina and Brazil, and open the door to new contracts.

Not all are convinced, though.

"Until there is intensive exploration with private capital there will be no greater certified gas in Bolivia," local energy analyst Boris Santos Gómez Úzqueda told BNamericas.

"The state does not have the financial backing to be present in the entire chain: exploration, production, refining, transport," according to the expert, who added that for Bolivia to be "at peace" to cover internal consumption and new markets, and to add value, certified reserves must be 25Tf3.

For his part, Mauricio Medinaceli, energy consultant and former Bolivian hydrocarbons minister, questioned the new reserves, and the lack of official reports.

"In the absence of information, we can launch the following hypothesis: P1 reserves (proven) in Bolivia, increased because those classified as P2 and P3 were 'reclassified,'" according to Medinaceli.

LATEST DEVELOPMENTS

On Thursday, Bolivia's state hydrocarbons company YPFB inked an MOU with Algeria's Sonatrach to cooperate in the areas of exploration and petrochemicals, in particular support for the South America's export plans, such as that envisioned through Peru.

YPFB also announced it expanded an agreement with Beicip-Franlab to widen the scope of exploratory studies to evaluate the hydrocarbons potential of the Madre de Dios, Sub Andino Sur, Sub Andino Norte, Pie de Monte and Llanura Chaqueña basins.