YPFB Spreads Its LatAm Wings

Bolivia’s state oil company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) said January 29 it plans to establish business units this year in Brazil, Argentina, Paraguay, and Peru as part of its international expansion.

“Today, we export natural gas, LPG, recon (reconstituted crude), isopentane, and through our ammonia and urea plant, we also export fertilizers,” YPFB CEO Oscar Barriga Arteaga said. “This product portfolio allows YPFB to actively participate in the target markets.”

The newly announced expansion plan will in some cases allow the business units to participate actively in the product distribution chain in the target markets.

Land-locked Bolivia produces gas for use in the domestic market and for export to larger gas consuming markets in Brazil and Argentina. A shale boom in Argentina continues to reduce its demand for Bolivian gas, but opportunities remain in other Latin American countries that need gas, including Brazil, Paraguay and Peru.

YPFB plans to move immediately to open offices in the four countries, using Bolivian personnel to launch the operations, and is finalising administrative procedures related to the opening of its Brazilian unit, Barriga said.

YPFB continues to move forward with engineering details related to a new gas pipeline to Paraguay, which is seen as the next immediate export market for Bolivia’s gas.

Barriga said YPFB plans to actively participate in Peru not only in tenders related to gas provision for southern Peru, but also in activities related to the installation of gas networks that will connect domestic, industrial and commercial markets there.

“Our plans in Peru include construction of a pipeline that will reach Ilo and give us autonomy in the transportation of fuels,” he said. “Additionally, we also plan to build a gas storage plant in Peruvian territory.”