MOSCOW: Bolivia’s government-owned oil company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) and the Russian natural gas company Gazprom signed a framework agreement on Friday to evaluate the hydrocarbon potential of three potential oil reserves in the South American country.
Guillermo Acha, the president of YPFB, said from Russia, via a telephone interview with Bolivian media, that the important agreement was signed during the International Economic Forum 2016 in Saint Petersburg.
The agreement will allow the companies to evaluate the hydrocarbon potential in the Bolivian Amazonian regions of Vitiacua, La Ceiba and Madidi.
According YPFB, Vitiacua is located between the eastern department of Santa Cruz and the southern department of Chuquisaca with an area of 73,875 hectares (738.75 square km) while La Ceiba covers 47,500 hectares (475 square km) and is located in the southern department of Tarija.
Madidi has the largest area with 690,000 hectares (690 square km) and is located in the western department of La Paz.
On Feb. 18, 2016, Gazprom, YPFB and Bolivia’s Hydrocarbons and Energy Ministry signed an action plan in order to implement the cooperation agreements.
The plan included a joint search to implement new projects in the field of exploring, producing and transporting hydrocarbons.
It also includes signing the study agreements, which aim to evaluate hydrocarbon potential in areas with suspected oil reserves in favor of YPFB.
These studies will be carried out under the conditions established in the study agreements specific to each of the mentioned areas.
It is estimated that in the event of a commercial discovery, an additional 370 million U.S. dollars could be invested in order to develop the areas.
According to Acha, these study agreements and the future contracts for the exploration and exploitation of hydrocarbons make up a series of measures that YPFB is promoting in priority areas such as exploration.
