Bolivia Eyes Petroleum Revenues Above $2.6bn in 2019
Bolivia expects oil and gas revenues to exceed $2.6bn in 2019 thanks to changes to an existing natural gas purchase and sale agreement with Argentina that will add as much as $500mn to revenues this year, hydrocarbons minister Luis Alberta Sanchez said February 17.
“Petroleum revenues will be higher this year taking into account the average projected price of oil, gas prices established in the new addendum with Argentina, and the gas contract with Brazil,” Sanchez said.
Contract negotiations last week with Argentina established better prices and increased volumes for gas exports, he said.
Gas-rich Bolivia has been concentrating its efforts on improving existing gas sales contracts with both Argentina and Brazil with better pricing scenarios.
The contract changes establish a price of $7.18/mn Btu, 15.1% higher than the previous price of $6.24/mn Btu, for exports to Argentina that reach or exceed 10mn m3/day during the summer months of January through April and October through December.
Another change, Sanchez said, indexes certain export volumes to a benchmark LNG price.
“The best thing is to have gas indexed to LNG because gas competes with gas, not with oil,” he said.
Based on a liquefied natural gas price of around $9.50/mn Btu, and factoring in a regasifaction fee, the new terms establish an export price of nearly $10.30/mn Btu for gas exports that exceed 10mn m3/day during the winter months of May through September.
Finally, new terms also stipulate minimum summer nominations of 11mn m3/day and maximum winter nominations of 16mn m3/day in May and September and 18mn m3/day June through August.