Bolivia Extends Gas Contract With Brazil
Bolivia’s Yacimientos Petroliferos Fiscales Bolivianos, also known as YPFB, said January 18 it has extended a contract for the purchase and sale of natural gas with Brazil until at least 2022.
“Our contract with Brazil will be extended until 2022 or 2023 and gas deliveries will be paid using the current WTI price, guaranteeing revenues of about $150mn/month,” YPFB CEO Oscar Barriga Arteaga said.
Barriga said the contract with Brazil, which will be negotiated this year and next, establishes that all volumes not requested during the last 20 years by Brazil’s Petrobras must be delivered from year 2020.
Land-locked Bolivia, with estimated proved gas reserves of 10.7 trillion ft3, has struggled to boost its gas reserves, while its gas production continues along a downward trend. Maintaining gas exports to Brazil and Argentina is imperative for Bolivia since they represent the country’s primary export markets.
Bolivia maintains a delivery or pay contract with Brazil for close to 31mn m3/day through 2019 or 2020, and a similar contract with Argentina for between 20mn and 23mn m3/day until 2026, according to data from Bolivia-based consultancy Gas Energy Latin America.
“What we are going to have is a contract extension until 2022 or 2023, depending on when the contract ends. If we are asked for 31mn m3/day, that time can be shortened,” said Barriga.