Repsol to Operate Bolivian Gas Field

A consortium led by Spain’s energy giant Repsol will operate the Iniguazu gas field in southern Bolivia after the president of Bolivia, Evo Morales and the chairman of Repsol Antonio Brufau signed an agreement during the Gas Exporting Countries Forum (GECF) on November 21.

Repsol E&P Bolivia will be the operator of the field with a 15% stake, partnering Anglo-Dutch major Shell (15%), Pan America Energy (10%), state-owned YPFB Andina (46.555%) and YPFB Chaco (13.445%).

Morales estimated that “around $900mn of investments are necessary” in order to successfully operate the field, which is next to the Caipipendi area, where Repsol already operates the Margarita-Huacaya field, the largest in the country, which produces 19mn m³/d.

“The committment of this group, of these five companies is unique, absolute and we are convinced that with a little bit of luck and if the geology doesn’t deceive us, we will be able to replicate a project like Caipipendi, which has contributed to many successes in this country,” said Repsol chairman, Antonio Brufau, according to Spanish daily Expansion.

In 2016, Repsol’s total net gas production in Bolivia reached 2.39bn m³, primarily from Margarita-Huacaya. 

Repsol and its consortium partners extended the contract for the Caipipendi area by 15 years until 2046, investing $980mn in the block. Additionally, Morales also signed an agreement with Brazil’s Petrobras during the GECF for gas exploration in the San Telmo Norte and Astillero blocks.

According to Reuters, Morales expects “the projects with foreign partners could add about 21mn ft³/d of output, with early production coming on line as early as 2020 or 2021.”