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Bolivia maps out plan to boost natural gas


News wires

President Evo Morales unveiled a plan to increase Bolivia's natural gas reserves by 10 trillion cubic feet with the help of Venezuelan state-run energy company PDVSA.

Morales said he dreams that state oil company YPFB will be operating five drilling teams before the end of next year.

Until now, YPFB did not have equipment to look for natural gas.

Its Venezuelan partner PDVSA, has 160 exploration rigs, said Morales.

Bolivia has 47 trillion cubic feet of proven and probable natural gas reserves, the second-largest deposits of the fossil fuel in South America after Venezuela, said Reuters.

"We hope to add more than 10 trillion cubic feet to the reserves in these 12 blocks ... there we're going to invest $888 million," said PDVSA vice-president Eulogio del Pino, referring to a deal with the Venezuelan government to explore for oil and natural gas.

YPFB and PDVSA plan to explore in Bolivia's traditional natural gas producing region in the eastern lowlands as well as in La Paz, in the Andes.

Energy companies Petrobras, Spain's Repsol and France's Total agreed to continue operating in the country under the rules outlined by Morales.

The Venezuelan government backed Morales' energy nationalisation with advisors and aid, and also signed a joint-venture deal to create an oil and gas firm, Petroandina Gas, which is 60% owned by Bolivia's YPFB and 40% by Venezuela's PDVSA.

Petroandina plans to invest $900 million in exploration and production in various areas of the country.

Del Pino said PDVSA is not investing in Bolivia to "make business" but to help the country.


Wednesday, 30 July, 2008, 22:49 GMT  | last updated: Thursday, 31 July, 2008, 00:47 GMT

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