Vintage will invest $504 million in exploration and exploitation of hydrocarbons in Bolivia

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

UCOM-MHE-YPFB-01-20-2023.- Vintage Petroleum Boliviana will invest $us504 million in exploration and exploitation activities that will cover areas of Sayurenda, Yuarenda and Carandaiti included in traditional and non-traditional areas of the departments of Chuquisaca, Tarija and Santa Cruz.

"The signing of these contracts boosts investment and exploration activities in the departments, where these three areas are located," said the Minister of Hydrocarbons and Energies, Franklin Molina Ortiz.

It is also necessary to analyze the context in which they are signed and it is related to the situation in the country, in 2022 it had significant dynamism, income from gas exports that exceeded US$3,000 million after seven years, which reflects work and a joint effort carried out by our state company, added the authority.

“It is important to us that investors are included in exploration tasks. The security and economic stability that Bolivia offers, thanks to the work of our President of the Plurinational State, are attractive to attract new investments that will boost the economy. The exploratory activities open up the option of greater gas production in the country”, affirmed the executive president of the state oil company, Armin Dorgathen Tapia.

The investment is contemplated in the Petroleum Services Contracts (CSP) signed this Thursday, between the president of YPFB, Armin Dorgathen Tapia and Jorge Martignoni, General Manager of Vintage Petroleum Boliviana LTD, a company dedicated to the activities of oil, petrochemical and industrial services . At the end of last year, the executive branch promulgated laws No. 1476, No. 1472 and No. 1474, which gave the green light to start these contracts.

Jorge Martignoni, from Vintage, highlighted that the negotiation was very fruitful for both oil companies, they took their time, but everything was negotiated by Bolivian personnel. “It now remains to move on to the next steps and start the environmental permits, the surveys with the populations and go directly to the activity. We have high expectations, many leads have been determined in these areas”.

The signing of these three oil services contracts is recorded in circumstances in which Bolivia is experiencing unprecedented economic stability, as a result of the application of the Productive Community Social Economic Model for 14 years.

THE AREAS

The new Oil Services Contracts are for exploration and exploitation activities in the Carandaiti (Chuquisaca, Tarija and Santa Cruz), Sayurenda (Tarija) and Yuarenda (Tarija) areas.

As a result of the entry into force of the three new contracts and the expected hydrocarbon commercial discovery, it is projected to increase natural gas reserves by around 370 trillion cubic feet (BCF).

The investments in the exploration and exploitation activities to be carried out by the operating company Vintage would reach USD 504 million and the Bolivian State could obtain income of at least USD 1,500 million, resources that will be distributed among the central government, departmental governments, municipal governments and universities through royalties and taxes to improve the quality of life of the population.