PRESS RELEASE

The 2019 hydrocarbon challenges in Bolivia

By
Sunday, January 20, 2019

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

The Minister of Hydrocarbons, Luis Alberto Sánchez, explained "the challenge of the 2019 management is to conclude the five wells that are drilling, we hope that they are positive, we will start operating activities of the 17 wells that are planned. Argentina and Brazil, participating in shareholdings with new clients mainly in thermoelectric plants in Brazil and marketing and distribution with the other companies to generate higher revenues and achieve energy integration with Paraguay and Peru ".

In this sense, he explained "before the contract we had with Brazil and Argentina was with the state companies, we sold the gas to Petrobras for $ 6, they sold it for $ 15, the challenge now with the new contracts with the private companies is that YPFB participates in these margins through the commercialization, distribution and thermoelectric plants through the companies that are going to settle with these companies, and we are analyzing the export through LNG to other markets ".

In the field of exploration the authority explained "we are in the productivity tests of Chaco Este - X1, we are now with five more wells in drilling: Boyuy - X2, reached the 7,880 meters of depth, with 100% of sandstone and detection of Gas of 260 UGT (Total Gas Units) is still being worked to reach 8,000 meters in the Huamampampa Kïpe sand according to schedule, Jaguar-X6, Sipotindi-X1 are also drilling in the wells in Caranda X-1005 and Incahuasi-5 we reached the objectives of the drilling, both have good indications of hydrocarbons.There are estimated 4 TCF of recoverable resources associated with these projects, 6 wells that we will be completing in the first half of this year ". On the other hand, the authority highlighted the portfolio of projects that the sector has for this management, "in the coming weeks we started the drilling operations of the exploratory wells Ñancahuazu-X1 and Florida-X2.We are working together YPFB and the companies to optimize the schedule of activities of the projects Margarita Profundo, Boyuy - X3, Boicobo Sur - X1, Aguarague Center - X1, Iñiguazu - X5, Itacaray - X1, Domo Bear - X1, Domo Tarija - X2, Yarará - X1, Irenda, Miraflores and Cabezas, in order to start exploratory drilling activities this year, and with the wells Gomero - X1 IE, Copoazú - X1 IE and Mayaya Centro - X1 IE we enter nontraditional areas in the departments of Beni, Pando and La Paz , to further enhance the potential of the Madre de Dios Basin and the Subandino Norte, expanding the exploratory frontier to these three departments, and assessing the potential of Chaco Stack or the Chaco Stacking in the Miraf Area. "These 17 wells have a potential associated with more than 13 TCF, so we estimate that in the coming months and years we will discover large hydrocarbon reserves."

Sanchez said that the discovery of the mega structure Huamampampa Kipa "will allow this year to change the vision of exploration and development of fields, we will work with the companies, both YPFB and the operators, in the visualization of new wells at deep levels to find these new resources hydrocarbons ".

Regarding industrialization, the minister said "this year we will launch the tender for the Propylene - Polypropylene Plant that will be the mother of the industries in the Bolivian Chaco region, and we will continue to consolidate the export of large volumes of urea, LPG, recón, white gasolines and isopentanes, which will allow us to generate new currencies for the country ".

Regarding the massification of gas in the domestic market, the authority said that "this YPFB management has planned to arrive with residential gas to one million installations, which will allow over 50% of the population to have access to this benefit. Regarding the NGV in 2018 we reach 25% of the entire fleet, we will continue to make conversions but we will also give greater strength to the requalification of cylinders and NGV kits, allowing the sustainability of the vehicles converted in all these years to NGV ".

Another big challenge of the management is the consolidation of green fuels "we signed a contract for 150 million ethanol, with the four sugar mills of Santa Cruz, now our next challenge will be to meet the Euro 4 standard, with the addition of the new gasoline Super Ethanol 97 and the beginning of the era of Flex Fuel vehicles, in addition to the entry of biodiesel. "

Achievements achieved in 2018

The minister described as successful and historic the year 2018, "it was an important year, I would say historical, because we certified the highest hydrocarbon reserves in Bolivia's history of 10.7 TCF, which shows that thanks to the exploration work has been replaced the gas consumed (internal and external market) and has increased, another fundamental fact was the entry of Bolivia in the era of Green Fuels, ethanol after many decades becomes a reality, in a historic public agreement - private".

"In the field of investments in these four years, we managed to attract $ 5,648 million for the exploration and exploitation of hydrocarbons through eight contracts, four addenda and four assignments, which will allow us to increase reserves and production in the coming years and that several are already in the process of execution ".

Another milestone that the minister highlighted was the oil rent for 2018 was greater than that reached in 2017, "$ US2,200 million, of which 50% is distributed among the governorates, municipalities and state universities of the country, for infrastructure works and of development for the good of Bolivians ".

In 2018 the historical figure of 4.7 million Bolivians was reached with the gas service at home, 27,000 kilometers of pipelines installed. 390,000 vehicles converted to Natural Gas Vehicles (NGV), "offering cheaper and more environmentally friendly vehicle fuel". Bolivia enters the era of green fuels, through ethanol, allowing the State to reduce the subsidy by Bs 350 million.

"In these four years we have promoted the transformation of the hydrocarbons sector begun in 2006. The work has been committed and fulfilling each of the presidential mandates." 2018 was characterized by great results, which we will continue to reinforce in this management and we will add new challenges, which they will not remain in promises, we will fulfill those challenges just as our brother president fulfilled each one of his promises, "the minister concluded.

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