The president of Bolivia, Luis Arce, announced that after an investment of USD 50 million, the country achieved the most important discovery since 2005. It is a mega natural gas field of 1.7 trillion cubic feet.
Arce indicated that the new discovery was made in the north of the department of La Paz, capital of the South American country, although he did not give details of how this discovery will increase the fuel reserves in the country, since “the state oil company YPFB is in the phase of hiring a consulting company to carry out studies of proven and probable reserves.”
As background, it is appropriate to mention that until 2019, Bolivia had 8.95 TCF, mostly destined for Brazil and Argentina. In 2018, the proven reserves ceiling was 10.45 TCF.
“Gas exports were Bolivia’s main source of income until 2021, when they were replaced by gold exports.”
The president clarified that the country is going through a significant drop in gas production, so the discovery of the new megafield is of vital importance.
Data from the state oil company YPFB indicate that Bolivia produces 35 million cubic meters per day (mmcd) of gas, “it dispatches 4 to 5 mmcd to Argentines, about 18 mmcd to Brazilians and about 12 mmcd is for its internal market.”
This reality complicates the Bolivian economy, because low gas production causes it to consume its monetary reserves in order to sustain the import of diesel and gasoline. This translates into a decrease in dollars in the banking system.
M.Pino
Source: swissinfo
(Reference image source: KWON JUNHO in Unsplash)
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