Repsol, partners extend Bolivia contract

A consortium led by the Spanish energy giant Repsol extended the contract for its largest gas development project in Bolivia on Wednesday and announced plans to explore a second field nearby.

Studies have shown that the potential in the Boyuy and Boicobo Sur fields, located in the Caipipendi area in the south of Bolivia, could be up to 85 bcm (3 tcf) of gas, a Repsol press release said.

The deal to extend the Caipipendi consortium’s operating contract in the area by 15 years until 2046 was signed in the presence of Bolivian President Evo Morales by the state-owned oil and gas company of Bolivia, YPFB, and representatives of the consortium, which includes Repsol (37.5%), Shell (37.5%) and PAE (25%).

“This is an important agreement for Bolivia as these projects look beyond 2020, and we’ve worked with the consortium to speed up these investments,” YPFB CEO Guillermo Acha told journalists during the ceremony.

According to the terms of the new contract, Repsol and its partners will invest USD 500 million in the field by 2021. The total investments in Caipipendi would reach approximately USD 1 billion, Acha added.

According to YPFB data cited by Reuters, Bolivia has an estimated 311 bcm (11 tcf) of gas, which accounts for about half of the country’s exports. Its main markets are neighbouring Argentina and Brazil.

The deal came as Bolivia has sought to ramp up its exploration and production activities in recent months. Morales, famous for his nationalisation drive in the first years since 2006, when he became president, is hoping to sign nine E&P deals this year, part of a USD 12.7-billion investment programme in hydrocarbons over the next five years, Platts reported.

Repsol currently operates in seven exploration blocks and 25 development/production blocks in Bolivia.