(Energy Analytics Institute, 5.Aug.2020) — Bolivia’s state oil and gas entity Yacimientos Petrolifos Fiscales Bolivianos (YPFB) will cease to receive some $223 million over three years after signing an eighth addendum with its Brazilian counterpart Petrobras.
“This year the figures is $58 million, in 2021 it’ll be around $80 million and in 2022, about $85 million,” reportedly local media outlet La Razón, citing Bolivia Hydrocarbons Minister Víctor Hugo Zamora.
One of the conditions to benefit Petrobras through the deal signed with YPFB allows the Brazilian oil giant to cease payments for the transport of natural gas from Rio Grande to Puerto Suárez (Mutún), on the Bolivian side.
“Petrobras made it a condition that the Bolivian side pays it for Bolivia and the Brazilian side pays it for Brazil,” Zamora said. “That is to say, the section from Rio Grande to the Mutún.”
La Razón announced prior to the signing of the eighth addendum to the natural gas purchase agreement signed between YPFB and Petrobras, that the Bolivian oil company would stop receiving about $5.34 million per month for the transport of energy between Río Grande and Puerto Suárez (Mutún), on the border with Brazil, a cost that before the signing of the new agreement was paid by the Brazilian oil company.
According to La Razón’s calculation, in 142 days, from 11 March 2020 (when the eighth addendum came into effect) until 31 July, the Bolivian state oil company has already lost $25.3 million.
With a progression until the end of the year, based on an average export of 14 million cubic meters per day (MMcm/d) of natural gas and not the limit of 20 MMcm/d, La Razón had estimated the economic impact would be about $52.5 million.
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By Ian Silverman. © Energy Analytics Institute (EAI). All Rights Reserved.
