Monday, June 30, 2014

Bolivia: France's Total, Russia's Gazprom, Argentina's Tecpetrol to Share in Gas Fields

According to The Latin American Tribune, France’s Total has sealed a deal to give Russia’s Gazprom 20% of its rights to operate gas fields in southeastern Bolivia, state-owned oil company YPFB said.

The gas deal was reached in 2010, signed in 2012 and approved by Bolivian lawmakers last year.

COMMENT: Total will now own 60% of the Aquio and Ipati areas, while Argentina’s Tecpetrol and Gazprom will each own 20% stakes, YPFB, which has controlled Bolivia’s oil and gas industry since 2006, said.

The contracts were confirmed by YPFB CEO Carlos Villegas, Gazprom’s general manager in Bolivia, Vladimir Burdakov, and Total’s top executive in Bolivia, José Ignacio Sanz.

The Aquio area, located between Santa Cruz and Chuquisaca provinces, covers 25,400 hectares (62,716 acres), while the adjacent Ipati area covers 61,375 hectares (151,543 acres).

Total has several operating contracts in Bolivia and Gazprom signed a $130 million investment agreement with the French energy giant in August 2013 to explore 700,000 hectares (1.72 million acres) in the Andean nation.