Petrobras plans to extend Bolivia gas supply deal

Monday, October 6, 2014

Brazil's federal energy major Petrobras confirmed plans to extend its long-term natural gas supply deal with Bolivia, La Paz-based state news agency ABI reported.

The current agreement, which allows Petrobras to import up to 30.08Mm3/d from Bolivia's national oil company YPFB, expires in 2019.

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"Petrobras has officially expressed interest in starting negotiations soon for a new contract from 2020 onwards," YPFB chief executive Carlos Villegas said.

According to Villegas, talks could begin as soon as next year, focusing on "price, volume and calorific value."

In August, Bolivian President Evo Morales proposed the start of negotiations for an extension to the deal, which began in 1996.

"We, of course, have accepted [Petrobras' request]," Villegas said. "It's good news. Brazil has made it official, presenting us with its natural gas balance."

The announcement comes amid soaring Brazilian demand for natural gas to fire thermoelectric power plants.

Meanwhile, YPFB will next year invest US$300mn to explore non-traditional oil and gas areas, according to ABI.

BNamericas will host its second LatAm Oil & Gas Summit in Houston, Texas, on September 10-11. Click here to download the agenda.