Page Seven / La Paz
Natural gas production in 2021 fell from 46.61 million cubic meters per day in January to 41.75 MMmcd in December. The level is below the target of 47.38 MMmcd that Yacimiento Petrolifos Fiscales Bolivianos (YPFB) projected for last year.
Figures from the Ministry of Energy, Mines and Hydrocarbons of the Government of Santa Cruz reveal that the maximum volume produced for delivery to the domestic and export markets was 48.67 MMmcd in March and then gradually declined to the lowest level in December .
YPFB, in its 2021 Initial Public Accountability report, reported that in 2020 gas production closed at 43.17 MMmcd and projected that in 2021 it would reach 47.38 MMmcd.
Former Hydrocarbons Minister Álvaro Ríos said that the figures mean that Bolivia’s production capacity fell by about 5 MMmcd.
He explained that this is due to a natural decline in the country’s oil fields by an average of 3% to 3.5% per year.
In addition, production from Margarita’s X-3 well fell by 2.5 MMmcd and only 1 MMmcd has been recovered. “The maximum gas production with which Bolivia started this year is between 41 and 42 MMmcd and that must be distributed between the 20 MMmcd demanded by Brazil and the 13 MMmcd demanded by the domestic market. What is left over is the balance left to negotiate with Argentina ”, he pointed out.
He noted that a fall of 3% to 3.5% is expected in the supply this year and there is less gas, something that Argentina demands because there is no production capacity.
“This decline drags down the production of condensate and oil and causes more gasoline and diesel to be imported,” he observed.
The former superintendent of Hydrocarbons, Hugo de La Fuente, said that most of the wells are in decline and in general only a few investments are made in drilling, but for years the sector has not performed very well.
He warned that without new investments and reserve discoveries, gas production cannot be improved.
“This is precisely why we have not been able to consolidate a 30 MMmcd contract with Brazil and only 20 MMmcd is sold. The trend is down, the only well that continues to contribute more is Incahuasi ”, he pointed out.
According to De La Fuente, the Government take (percentage of taxes that companies must pay) in Bolivia is very high compared to other countries.
For this reason, a new law is urgently needed to give security to companies that arrive in Bolivia.
The hydrocarbons sector analyst, Susana Anaya, agreed that the main gas fields are in decline and there were no new discoveries and reserves, therefore, production does not increase.
He assured that the regulations are not adequate and the tax burden is high. Furthermore, the prices of the domestic market as well as the contractual conditions are not attractive for operators in the hydrocarbon sector.
Fall since 2015
- Offer The decline in gas production has been dragging on for several years. In 2015, a gas production peak of 61.3 MMmcd was reached and last year it closed at 41.75 MMmcd.
- Condensed In 2015, 63,000 barrels were produced and this dropped in 2020 to 41,660 barrels.
- Shopping Gasoline imports in value went from $ us 196.2 million in 2011 to $ us 569.9 million in 2019. In 2020, they fell to $ us 157.8 million and, as of September of last year, to $ us 356 million . Diesel imports grew from US $ 731.5 million in 2011 to US $ 912.7 million in 2020. In 2021, they were 802 million (data: IBCE).
