On Thursday, 5 October 2017, the representatives of PJSC Gazprom, Gazprom International, Gazprom Gazomotornoye Toplivo, the Ministry of Hydrocarbons and Energy of Bolivia and the Bolivian state-owned petroleum company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) participated in the meeting on the development of the Bolivian gas industry within the framework of the St. Petersburg International Gas Forum.

During the meeting, the parties discussed in depth the current status and outlook of the joint project on the update of the General Scheme for the development of the Bolivian gas industry until 2040. Preparation of this document will allow to assess domestic and external gas demand, improve efficiency of gas supply and gasification program implementation as well as gas competitiveness in the domestic and foreign markets of Bolivia.

Furthermore, the negotiators considered preliminary results of the joint activities on the development of new oil and gas prospects in this country. This July, Gazprom International and YPFB signed a Letter of Intentions concerning transition to the commercial negotiations regarding La Ceiba and Vitiacua blocks in the south of the Republic.

In the context of cooperation in the realm of NGV fuel, the parties discussed the arrangement of supply of vehicles fueled with liquefied and compressed natural gas to Bolivia as well as the development of gas-filling station network with the equipment of Russian production.

Bolivia is interested in purchasing cargo and passenger vehicles fueled with natural gas. Last year, during SPIGF in St. Petersburg, the Bolivian delegation met the representatives of the Russian carmakers in order to engage them in this pilot project. Earlier, the Russian side, with the support of Gazprom, donated to Bolivia a gas-engine truck tractor KAMAZ that was tested in highlands environment.

Background

Bolivia is the third country in South America by hydrocarbon production volume. More than 20 Bcm of natural gas are produced here annually. Proved reserves of gas at the end of 2013 were estimated at 297 Bcm, of oil and condensate – 28 MMt.

Under conditions of sharp decrease of resource quotes, the President of this South American state, Evo Morales, announced the economy diversification based mainly on the energy resources export and the initiation of petroleum sector industrialization that among others envisages the development of the NGV fuel market.

Gazprom's interests in Bolivia are represented by Gazprom International, a specialized company aimed at implementing international projects on hydrocarbon prospecting, exploration and development. Company’s representative offices are located in Santa Cruz de la Sierra and La Paz.

Gazprom International in partnership with French Total S.A., Argentinian Tecpetrol S.A. and YPFB participates in the projects for the development of the promising Ipati and Aquio oil-and gas blocks where the Incahuasi field is located. Gazprom together with Total E&P Bolivie implements an exploration project in the Azero block.

Last year, Gazprom, Bolivia's Ministry of Hydrocarbons and Energy and YPFB signed the Road Map on projects implementation in this country. According to this document, the parties agreed to perform joint exploration, production and transportation of hydrocarbons in Bolivia, and update the General Scheme for gas industry development until 2040.