Discovery May Boost This Country's Reserves 40%

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Major Gas Discovery Could Boost This Country's Reserves By 40%
Spanish major Repsol has discovered 4 Tcf of possible natural gas reserves in Bolivia, the company and the Bolivian government announced on February 19. The discovery could increase Bolivia's reserves by 40%.

Repsol will start tapping the discoveries in 2019. The three new fields - Ipaguazu, Boicobo, and Boyuy - are located in the Caipipendi block in southern Bolivia. Diego Diaz, the head of Repsol's Bolivian unit, was quoted by Reuters as saying that they contain sufficient gas to meet the demands of neighboring Brazil for over a decade.

Bolivian President Evo Morales said, "This news is a surprise...We had forecast 17 Tcf through 2020 and Repsol's new discovery wasn't in our plans."

Repsol holds a 37.5% stake in the block and Bolivia's state-run YPFB will be permitted to take 82% of earnings on new energy production, Reuters reported.

Bolivia now holds 10.45 Tcf of proven reserves. Natural gas represents about half of Bolivia's total exports. However, Reuters notes, in recent years its reserves have fallen due to fewer discoveries and inadequate investment.

Bolivian energy minister Luis Alberto Sanchez was quoted as saying that the new discovery will probably add $1.3 billion to the government's annual oil and gas proceeds.

Between 2006 and 2015, Bolivia earned $31.5 billion from its O&G sector. That's 600% more than in the previous 20 years, official data show.

President Morales nationalized the energy sector in 2006. He recently reiterated that the government will spend $2.4 billion in exploration and production in 2016, Reuters reports.