Bolivia signs gas agreements with Colombia’s Canacol

RIO DE JANEIRO, BRAZIL – The Bolivian government signed on Monday natural gas exploration and production agreements with Canacol Energy Colombia SAS, which are expected to bring at least US$94 million of investment to the sector.

In a public act, the president of the Bolivian oil company YPFB, Armin Dorgathen, informed that the agreement consists of drilling seven wells, one of them being exploratory.

“If everything goes well and the exploratory well is positive, we will achieve an oil income of US$424 million and an increase in natural gas production of 21 million cubic feet per day (MMcfd),” said Dorgathen.

Exploration activities are projected for 2023 and the start of production for 2025. He added that within the estimates, 141.3 trillion cubic feet (BCF) of gas is projected.

Faced with the decline in gas extraction and export commitments to Brazil and Argentina, Bolivia is promoting an exploration plan with international partners to increase reserves by five trillion cubic feet (TCF) until 2024, according to YPFB’s projections.

Bolivia certified in 2018 its proven natural gas reserves at 10.7 TCF, with a life estimate of about 15 years.

Canacol Energy is Colombia’s largest independent onshore conventional natural gas exploration and production company.

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