CBHE highlights the result of the Margarita 10 well and hopes that new investments can be generated

CBHE highlights the result of the Margarita 10 well and hopes that new investments can be generated

The oil companies affiliated with the Bolivian Chamber of Hydrocarbons and Energy (CBHE) highlighted the results obtained in the drilling of the Margarita 10 well, which will add 3 million cubic meters per day to gas production, developing 0.35 trillion feet cubic meters (TCF’s) of reserves, which reflects the commitment of the companies in the sector to the country.

Over the weekend, the state oil company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) anticipated that the production of this well will generate income to the State for more than 260 million dollars a year. Margarita 10 is a well, located in the countryside Margarita-Huacaya operated by Repsol, a company that, together with YPFB, is working to incorporate these new volumes of gas into Bolivian production as soon as possible. It is estimated that this will be possible in the middle of the year.

The Margarita field (in Tarija) and Huacaya (Chuquisaca) it is part of one of the main gas reservoirs in Bolivia, where Repsol and other foreign companies operate under concessions from the Bolivian State, through YPFB.

“YPFB and Repsol make their best efforts to make this production available to the markets in the shortest possible time”, said the president of the Bolivian company, Armin Dorgathen, quoted in a company statement.

For years, hydrocarbons were the main export sector in Bolivia, but recently it was surpassed by non-traditional products. It was what happened last year, after 16 years in which hydrocarbons predominated in foreign sales.

Bolivian exports totaled 10,936 million dollars in 2021, 59% more than the previous year, affected by the Covid-19 pandemic that immobilized international trade for several months. Of this sum, US$2,343 million correspond to hydrocarbons and more than US$2,700 million to non-traditional products (soybeans, jewelry, chestnuts, among others). Meanwhile, the foreign sale of minerals exceeded $5.8 billion, but leaves very little income for the State from taxes and royalties (2.8%).

with Margaret, Dorgathen is hoping to negotiate a better contract with Argentina, taking into account that the last agreement is only for two months and contemplates a volume of 7.5 MMm3/d. “We have been working on the Margarita 10 well since 2021 and within the proposal of the negotiations (with Argentina) a seasonality was already foreseen. The negotiation with them has already been closed and they know how much we are going to export in winter and summer, we only extended the pre-agreement to have greater certainty,” he said in statements to EL DEBER Streaming.

In this sense, the CBHE expressed its confidence that in the short and medium term conditions can be generated to promote new investments, both in development and exploration, which is essential for the replacement of reserves and the reactivation of the entire sector.

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