(Energy Analytics Institute, Ian Silverman, 12.Jul.2018) – Foreign Direct Investment (FDI) in Latin America and the Caribbean fell for a third straight year in 2017, reported the Economic Commission for Latin America and the Caribbean or CEPAL by its Spanish acronym.
(Energy Analytics Institute, Ian Silverman, 12.Jul.2018) – The Bolivian government is still analyzing Argentina’s request to increase natural gas export volumes during the winter season and reduce them in summer.
Meetings between officials from Bolivia and Argentina are expected in coming weeks to discuss the proposals, reported the daily newspaper La Razón, citing Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) President Óscar Barriga.
(Energy Analytics Institute, Jared Yamin, 4.Jul.2018) – This figure is according to the most recent study results, and excludes protected areas.
The figure climbs to a bit over 60,000 megawatts if protected areas are included, reported the daily newspaper La Razón, citing Antonio Pinheiro, CAF Development Bank Corporate Vice President of Infrastructure.
(Energy Analytics Institute, Jared Yamin, 4.Jul.2018) – Citizens in the city of Trinidad, located in department of Beni, continue to protests elevated electricity rates.
As a result, the Beni Electricity Distributor (ENDE DELBENI S.A.M.), a subsidiary of the National Electricity Company (ENDE), plans to investigate complaints circulating of customers being charged electricity rates up to 300% higher in the city.
“There is a special situation here. People are complaining about their high invoices, and the task at hand now is to try to verify, inspect, and investigate what is happening,” reported the daily La Razón, citing company official Humberto Villegas.
(Energy Analytics Institute, Aaron Simonsky, 28.Jun.2018) – Gazprom confirmed it will invest $1.22 billion in the Bolivian petroleum sector.
The Russian company’s investments will be destined towards exploration activities at the Vitiacua field located in the department of Chuquisaca. Gazprom didn’t rule out financing rehabilitation projects for older Bolivian fields, reported the daily newspaper La Razon.
The announcement came during a ceremony in the presence of Bolivia’s President Evo Morales with Gazprom and the Russian fertilizer company Acron. Other meetings in Moscow included the presence of numerous authorities from the government of Russian President Vladimir Putin.
Bolivia and Russia also discussed deals related to geological cooperation on issues related to groundwater, the daily reported.
(Energy Analytics Institute, Aaron Simonsky, 24.Jun.2018) – Bolivia has named as a new director at YPFB Transporte.
Luis Arce, who served as Bolivia’s Economic and Finance Minister from January 23, 2006 until June 24, 2017, when he left his post for medical reasons, will replace Evelio Harb Pedraza, reported the daily La Razón, citing details from Bolivia’s Bolivian Stock Exchange (BBV by its Spanish acronym).
Additionally, David Gutiérrez was named as trustee to the state entity, replacing Benjamín Galván.
With the changes, YPFB Transporte’s board is now conformed of the following executives: Oscar Barriga, Wilmer Saavedra, Wilson Zelaya, Luis Arce, Florencio López, William Morales and Víctor Saldías.
(Energy Analytics Institute, Jared Yamin, 16.Jun.2018) – Russian oil giant Gazprom remains attracted to the hydrocarbon opportunity set in Bolivia in South America.
A working meeting between Gazprom Management Committee Chairman Alexey Miller and Bolivia’s President Evo Morales was held at Gazprom’s office in Moscow where various agreements were signed with the aim to expand cooperation between Gazprom and Bolivia in the petroleum sector.
Land-locked Bolivia is the third-largest hydrocarbon producer in South America, extracting over 20 billion cubic meters of natural gas per year. Bolivia’s gas production is initially destined for the domestic market, while excess gas supply is exported primarily to Argentina and Brazil.
Miller expressed appreciation for the ongoing implementation of joint projects in Bolivia and discussed the opportunities to increase output at Bolivia’s Incahuasi natural gas field. The Russian official placed emphasis on joint plans for geological exploration in the promising Vitiacua oil and gas block, reported Gazprom in an official statement on its website.
A summary of the signed agreements follows:
Gazprom Management Committee Deputy Chairman Vitaly Markelov and Yacimientos Petroliferos Fiscales Bolivianos (YPFB) Vice President for Contract Management and Supervision Luis Poma signed a strategic cooperation agreement that envisions joint efforts in a wide range of areas including but not limited to the following: geological exploration, gas production and hydrocarbon transportation across Bolivia, development of the national gas and oil transportation infrastructure and NGV market, exchange of experience and personnel training, and sci-tech collaboration.
Gazprom EP International B.V. Managing Director Andrey Fick and Luis Poma also signed a term sheet related to the contract for exploration and production in the Vitiacua oil and gas block that will allow the companies to start drafting the main design documentation.
Finally, Bolivia’s Hydrocarbons and Energy Minister Luis Alberto Sanchez and Alexey Tyupanov, the CEO of EXIAR — the Russian Agency for Export Credit and Investment Insurance, which was established in late 2011, becoming Russia’s first export credit agency — signed an agreement to secure financing for supplies of gas-fueled machinery and equipment produced by Russian manufacturers.
GAZPROM IN BOLIVIA
In Bolivia, Gazprom International B.V., a company that participates in hydrocarbon prospecting, exploration and development projects outside Russia, represents Gazprom’s interests in projects in the country.
Gazprom in partnership with France’s Total S.A. (operator, WI 50%), Tecpetrol S.A. (WI 20%), and YPFB (WI 10%) develops the promising Ipati and Aquio oil- and gas-bearing blocks, within which the Incahuasi field is located. Gazprom (WI 50%) and Total (WI 50%) also implement a hydrocarbon exploration project in the Azero block.
In 2016, Gazprom, Bolivia’s Ministry of Hydrocarbons and Energy, and YPFB established the means for implementing Bolivia-based projects for hydrocarbon exploration, production, and transportation, and updated the general scheme for development of the country’s gas industry through 2040. Gazprom and YPFB also cooperate in personnel training and retraining.
Finally, in 2016, Gazprom and YPFB signed an agreement to explore the promising La Ceiba, Vitiacua and Madidi blocks. The La Ceiba and Vitiacua blocks are situated in the Chaco oil- and gas-bearing basin in the southern part of Bolivia (Tarija and Chuquisaca departments).
(Reuters, Luc Cohen, 14.Jun.2018) – Argentina will begin exporting natural gas to neighboring Chile before the end of the year, the energy ministers of both countries said on Thursday, as output from the Vaca Muerta shale field rises.
The two South American countries had previously signed deals allowing for the export of gas or electricity in emergency situations, but required that an equivalent amount be re-imported within twelve months.
Chilean companies are in talks to sign import deals and the first flow of gas across the Andes could come in October or November of this year, Chile energy minister Susana Jimenez said in an interview in Bariloche, Argentina at the G20 Meeting of Energy Ministers.
“We see a great opportunity for mutual benefit,” she said, adding that the gas could come both from the Neuquen basin, home to Vaca Muerta, and from the Austral basin in southern Argentina.
The gas could be used for electricity generation, replacing imports from elsewhere, or to heat homes in areas where families still depend on wood, a source of pollution in the center-south region, Jimenez said. Chile produces little hydrocarbons of its own.
The unrestricted exports would mark a turning point in energy trade in the region. Argentina was once a major supplier of natural gas to Chile, but triggered a diplomatic crisis in the mid-2000s by cutting off shipments when its own supplies ran low.
Argentina sits atop the world’s No. 2 shale gas reserves but is still a net energy importer. Since taking office in December 2015, President Mauricio Macri has sought to loosen labor rules and boost infrastructure to attract investment.
Rising output from Vaca Muerta could help the country export more than it imports by 2021, Argentina’s energy minister Juan Jose Aranguren said at a news conference. The country is set to import slightly more than 50 cargoes of liquefied natural gas (LNG) this year, down from 68 last year and 90 in 2015.
Argentina still needs the LNG imports to meet peak winter demand, but in the southern hemisphere summer months it could see a surplus, Aranguren said.
“This summer we will start to sign permits for exporting natural gas to Chile without any restrictions,” he said.
(Efe, 13.Jun.2018) – Bolivia’s President Evo Morales met with his Russian counterpart, Vladimir Putin, as part of a two-day visit to Moscow aimed at consolidating the countries’ bilateral energy partnership.
While receiving Morales at the Kremlin, Putin expressed Moscow’s willingness to expand its cooperation with the South American country in the hydrocarbons area.
“Gazprom (the state-owned Russian natural gas producer) is working at two (Bolivian) fields where it extracts 2.5 billion cubic meters of gas. It’s now studying expanding production, which could be doubled,” Putin said at the start of talks with Morales.
A consortium in which the Bolivian unit of French oil major Total is the operator with a 50 percent stake, Gazprom and Bolivia’s TecPetrol each have a 20 percent interest and a unit of Bolivian state energy company YPFB has a 10 percent stake participates in exploration projects at the Aquio and Ipati gas and oil blocks, where the Incahuasi gas and condensate field is being developed.
Gazprom and Total also are carrying out an exploration project at the Azero block, which like Aquio and Ipati is located in southern Bolivia.
Putin also noted that Rosatom, Russia’s federal agency on atomic energy, was developing a nuclear research center in Bolivia.
“So I’m very pleased to confirm that our relations are growing, and today we’ll issue a joint declaration documenting all areas of our interaction,” he added.
For his part, Morales underscored the countries’ shared values, particularly in terms of “respect for nature, for Mother Earth.”
Bolivia’s president expressed his country’s interest in cooperating with the Eurasian Economic Union, which is made up of the post-Soviet states of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.
Morales on Thursday will visit Gazprom’s headquarters, where he is expected to sign several agreements locking in roughly $1 billion in Russian investment in Bolivia’s hydrocarbons sector.
(Energy Analytics Institute, Aaron Simonsky, 24.May.2018) – Energy Analytics Institute, formerly LatinPetroleum Inc., continues to promote its “Energy Education Initiative” in the Americas, also known as “NRG ED.”
NRG ED is structured to work with K-12 schools, community colleges, four-year colleges and universities, workforce training programs, communities and businesses, and aims to promote reduction of non-renewable energy usage in favor of renewable energies. However, the core of the initiative is education, without which the NRG ED initiative would not be.
“At its core the initiative is really focused on education,” said Chad Archey, Editor-in-Chief at Energy Analytics Institute from Atlanta, Georgia.
EAI views basic education as most important in the overall learning process and also promotes educational initiatives and research from grade school to the professional level related to the energy sector. EAI aims to foment constructive dialogue regarding energy usage as well as ways to reduce the carbon footprint left by non-renewable energy resources through the following: 1) educational consultancy, 2) development and distribution of educational and training materials, and 3) promotion of debate and discussion regarding renewable energy alternatives.
Energy Analytics Institute (EAI), formerly LatinPetroleum Inc. (dba LatinPetroleum.com), is a Houston-based independent company focused on producing non-biased news, updates and special reports for investors interested in the Latin America and Caribbean petroleum sectors.
(World Bank, 11.May.2018) – How do you turn on a light at night when you’ve left the power grid far, far behind? In Bolivia, the solution is solar power. This is one of several case studies in the upcoming State of Energy Access Report, supported by the World Bank’s Energy Sector Management Assistance Program (ESMAP).
(Energy Analytics Institute, Jared Yamin, 5.May.2018) – Bolivia plans to construct a gas liquefaction plant in the Peruvian port of Ilo in order to consolidate LNG exports.
The decision, announced by Bolivia’s Hydrocarbon Minister Luis Alberto Sánchez, was made without taking into account certified natural gas reserves or decline rates at the giant Tarija field, reported the daily El Diario.
(Efe, 4.May.2018) – Bolivia announced on Friday it was halting plans to spend $683 million on natural gas exploration work in an area of the southern province of Tarija due to environmental protests, saying that money would instead be invested elsewhere in the Andean nation.
La Paz said the two fields targeted for exploration had potential reserves of more than 4.21 trillion cubic feet and could have generated some $9 billion in revenue, $1.8 billion of which would have been allocated to that southern province.
In a press conference, Hydrocarbons Minister Luis Alberto Sanchez said some sectors in Tarija did not want the national government to invest there.
On April 7, Bolivia’s government enacted two laws authorizing natural gas exploration and production work at the Astillero and San Telmo fields, located in Tarija’s Tariquia Flora and Fauna National Reserve.
Sanchez said those funds would be allocated to “other places where the state’s work is appreciated.”
The minister said some non-governmental organizations, Tarija’s provincial government and that province’s civic committee were responsible for drumming up resistance to the gas project.
Public opposition to the planned exploratory drilling has become more vehement in recent days, prompting the government to reverse course.
Sanchez said, however, that work at both fields would have had a minimal impact on the national reserve’s 247,000-hectare (950-sq.-mile) area.
Brazilian state-controlled oil giant Petrobras and Bolivian state energy company YPFB’s Chaco and Andina units were to have carried out the work at Astillero and San Telmo.
(Energy Analytics Institute, Jared Yamin, 3.May.2018) – Bolivia’s Yacimientos de Litio Bolivianos (YLB) selected ACI Systems GmbH as its partner to create a joint venture company in charge of industrialization of the Bolivia’s lithium, reported the daily La Razón. The companies plan to build a lithium battery plant in Potosí that has an estimated price tag of $1.328 billion. Construction of the lithium hydroxide plant, the first of its kind in Latin America, is expected to conclude after 24 months.
(Energy Analytics Institute, Aaron Simonsky, 1.May.2018) – The United Nations Economic Commission for Latin America and the Caribbean, also known as ECLAC or CEPAL by its Spanish acronym, projects economic activity in troubled Venezuela will contract 8.5% in 2018.
Gross domestic product or (GDP) estimates for other important countries and regions follows:
(Efe, 30.Apr.2018) – A new natural gas well that began production Monday in the southern region of Tarija is expected to contribute $90 million to the public coffers over the next seven years, Bolivian officials said.
President Evo Morales traveled to Villamontes, Tarija, for the inauguration of the Sabalo 6 well, operated by Brazil’s Petrobras.
The well will produce 28 million cu. ft. per day of natural gas, according to state petroleum company YPFB.
“Production continues increasing, that guarantees not only our internal market, but also our export commitments,” Morales said.
Sabalo 6 will generate $20 million in royalties, taxes and profit-participation for the Bolivian treasury in its first full year of production, YPFB chief executive Oscar Barriga said.
Drilling at the site began in April 2016 and production testing started a year later.
(Energy Analytics Institute, Ian Silverman, 30.Apr.2018) – Bolivia and Denmark plan to invest $193.9 million on wind complexes in Warnes, San Julián and El Dorado in Bolivia’s Santa Cruz department. Bolivia and Denmark will front $66.8 million and $24 million, respectively, of the total investment. The difference or $103.1 million will be come via a credit, reported the daily La Razón, without providing details. In total, the three complexes will generate 108 megawatts of energy, according to the daily.
The projects comprise a greater initiative by the Bolivian government to generate sufficient energy to cover demand in the domestic market, and also export surplus energy to neighbors such as Argentina and Brazil.
(Energy Analytics Institute, Jared Yamin, 10.Mar.2017) – The entire population of the city El Alto will have access to domestic gas service in 2018.
Bolivia’s state oil company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) has invested an estimated $195 million in El Alto since 2006 and to-date has achieved an 80 percent completion rate for the project, reported the daily newspaper La Razón, citing Bolivia’s Vice President García Linera. YPFB plans to invest an additional $7.87 million in the project to reach its projected goal by 2018, reported the daily.
El Alto has an estimated 191,000 installed connections and this year the plan is to connect another 9,509 installations.
(Energy Analytics Institute, Jared Yamin, 11.Jul.2016) – The 6th version of the congress will take place from July 12-13, 2016 at the Los Tajibos Hotel in Santa Cruz de la Sierra, Bolivia and include the following themes:
1) global perspectives and hydrocarbon strategies in the current scenario,and
2) current and future challenges for the gas, oil and petrochemical industry.
(Energy Analytics Institute, Jared Yamin, 17.Jun.2016) – YPFB and Gazprom signed an agreement for the evaluation of the hydrocarbon potential of three areas reserved for YPFB.
The agreement was signed by YPFB President Guillermo Acha and GP Exploration and Production S.L. legal representative Andrey Stepanovich Fick for the Vitiacua, La Ceiba and Madidi areas, reported the daily newspaper La Razón.
Gazprom, YPFB and Bolivia’s Hydrocarbon and Energy Ministry signed an Action Plan on February 18, 2016 in which the entities agreed to evaluate the hydrocarbon potential of areas reserved for YPFB. Gazprom E&P plans to invest an estimated $370 million to develop the areas in the case a discovery has commercial potential.
Vitiacua is located between Santa Cruz and Chuquisaca departments and covers an extension of 73,875 hectares. La Ceiba has an extension of 47,500 hectares and is located in Tarija department. Both areas are located in what are known as a traditional area. Madidi covers an extension of 690,000 hectares in a non-traditional area in the La Paz department.
(Energy Analytics Institute, Jared Yamin, 11.Jun.2016) – Officials from YPFB and its Paraguayan counterpart PetroPar meet with LPG distributors in Paraguay to evaluate the expansion of sales and purchase agreements.
“Actually, YPFB has contracts with Paraguayan LPG distributors that expire in August,” reported the daily newspaper La Razón, citing YPFB President Guillermo Achá. “The contracts guarantee 100 percent of the demand for the fuel in this country through production which comes from Bolivia’s Río Grande Separation Plant and the Gran Chaco Plant.”
Bolivia uses Mont Belvieu as its benchmark for establishing the price of its LPG, said Achá.
YPFB and PetroPar executives established a two-month work timetable — starting July 1, 2016 — in which to establish topographic work in four cities in Paraguay, establish a final design for a gas network and supply Bolivian LPG to Paraguay for use among domestic and industrial users.
(Energy Analytics Institute, Jared Yamin, 8.Jun.2016) – Royal Dutch Shell, which ceased to operate in Bolivia in June of 2008, has laid out exploration and exploitation plans for the small land-locked South American country.
Shell, via BG Bolivia, announced plans to invest millions to focus on exploration activities at the Huacareta field located in Tarija department and exploitation activities the Caipipendi block in the Margarita-Huacaya department between the Chuquisaca and Tarija departments, reported the daily newspaper La Razón. Exact amounts to be invested were not revealed.
Bolivia contains large resources and has legal security, which makes it attractive for companies such as Shell to work with the country, reported the daily, citing Bolivia’s Hydrocarbon and Energy Minister Luis Sánchez.
“The principal objective of Shell in Bolivia is to continue with exploration activities in the Huacareta area,” reported the daily, citing Shell Executive Vice President De la Rey Venter.
“The presence and return of Shell to Bolivia justifies” what minister Sánchez has said about Bolivia, said Venter.
(Energy Analytics Institute, Jared Yamin, 7.Jun.2016) – Bolivia plans investments of $21.350 billion on hydroelectric projects that have potential to generate an estimated 8,575 megawatts (MW) of energy.
Bolivia is living an “energy revolution,” reported the daily newspaper La Razón, citing the country’s Hydrocarbons and Energy Minister Luis Sánchez. The investments will be carried out by Bolivia’s National Electricity Company (ENDE by its Spanish acronym), including basic studies, construction, studies and the final design of hydrocarbon projects, said Sánchez.
Some of the projects include, but are not limited to:
Misicuni (120 MW; $139 million investment);
Miguillas (200 MW, $447 million investment);
San José (124 MW);
Rositas (400 MW);
Ivirizu (253 MW);
Banda Azul (93 MW);
Huacata (6 MW);
Carrizal (347 MW); and
Molineros (132 MW).
Additionally, projects in the basic study phase and with potential to generate 1,500 megawatts include: Icona; Ambrosía; El Pescado; Aguas Calientes II; El Bala; the Río Grande Hydroelectric Complex; and Binacional with Brasil Río Madera.
(Energy Analytics Institute, Jared Yamin, 7.Jun.2016) – Bolivia’s Central Bank approved a credit for YPFB for 12,858.26 million Bolivian bolivianos to finance construction of a propylene and polypropylene plant in Yacuiba in Tarija department, reported the daily newspaper La Razón.
(Energy Analytics Institute, Jared Yamin, 7.Jun.2016) – YPFB plans to sign exploration contracts with its Argentine and Brazilian counterparts in July.
YPFB will sign exploration agreements with its Argentine counterpart YPF for the Charagua, Abapó and Yuchan areas and agreements with its Brazilian counterpart Petrobras for the San Telmo and Astillero áreas, reported the daily newspaper La Razón, citing YPFB President Guillermo Achá.
The San Telmo and Astilleros areas cover an extension of close to 210 hectares, reported the daily.
(Energy Analytics Institute, Jared Yamin, 6.Jun.2016) – Bolivia has the capacity to produce 61 million cubic meters per day of natural gas to cover demand in the internal market and for export.
Natural gas supply to cover demand in Bolivia as well as agreements with Brazil and Argentina totals 56 million cubic meters per day, reported the daily La Razón, citing Bolivia Hydrocarbon and Energy Minister Luis Alberto Sánchez.
Supply to Brazil is actually 24 million cubic meters per day — the minimum established under a gas supply agreement between Bolivia and Brazil — while supply to Argentina is 19.9, reported the daily, citing YPFB President Guillermo Achá.
“We could reach 60 or 61 million cubic meters per day to supply our two export markets as well as domestic demand,”said Achá. “We are trying to optimize the supply to Argentina, considering the transport capacity that the country has.”
(Energy Analytics Institute, Jared Yamin, 5.Jun.2016) – Bolivia has capacity to generate 40,000 megawatts of energy from hydroelectric projects.
“According to studies from international organizations Bolivia has capacity to generate 40,000 megawatts of energy from its hydroelectric plants,” reported the daily La Razón, citing Bolivia’s President Evo Morales.
Bolivia plans investments of $21.350 billion to generate 8,575 megawatts of hydroelectric energy through 2025. The country expects to have an excess of 10,000 megawatts that can be destined for export markets, according to Morales.
(Energy Analytics Institute, Jared Yamin, 2.Jun.2016) – YPFB plans to increase the number of LPG cylinders in Santa Cruz to 45,000 per day from 37,000 per day in order to satisfy demand in Santa Cruz, reported the daily newspaper La Razón, citing YPFB President Guillermo Achá.
“During the colder months demand increases, this is normal,” said Achá. “That is why we are taking precautions with the increase in LPG cylinders to 45,000 from 37,000 per day.”
(Energy Analytics Institute, Jared Yamin, 25.May.2016) – YPFB will increase the supply of LPG cylinders to an average 158,000 per day from 130,000 per day to guarantee supply of the product during the winter period which runs through August and potentially September.
The priority is to supply the internal market first, reported the daily newspaper La Razón, citing YPFB President Guillermo Achá.
YPFB plans to supply LPG to the following regions: La Paz (45,000 per day), Cochabamba (29,000), Santa Cruz (48,000), Oruro (8,100), Potosí (8,000), Chuquisaca (8,000), Tarija (7,500), Beni (3,500) and Pando (900).
(Energy Analytics Institute, Jared Yamin, 23.May.2016) – Bolivia’s natural gas exports reached $3.771 billion in 2015, up 867 percent compared to just $390 million in 2003, reported the daily newspaper El Diario, citing data from a report published by Bolivia’s Foreign Commerce Institute (IBCE by is Spanish acronym).
Gas export revenues – principally to Brazil and Argentina — reached a peak value of $6.113 billion in 2013, up 1,567 percent compared to 2003, according to the daily. Exports to Brazil have represented an average 79 percent of the total exports during 2003-2015, with the remaining 21 percent belonging to Argentina.
(Energy Analytics Institute, Jared Yamin, 23.May.2016) – Argentina’s state oil company Enarsa signed a contract to purchase natural gas from Chile at a price 53 percent higher than the LNG that arrives to Chile on tankers and 128 percent higher than what is pays for imports from Bolivia, reported the daily El Diario.
“Bolivia sends gas to Brazil and Argentina but does not have any more,” reported the daily La Razón, citing Energy Minister Juan José Aranguren. “Today, Argentina imports gas from Bolivia at $3/MMbtu, but will import gas from Chile at $7/MMbtu.”
The purchase of gas from Chile at $7/MMbtu will allow Argentina to save $46 million through the displacement of gasoil that it would have to buy at $10/MMbtu to generate electricity, said the minister.
Argentina will commence importing gas from Chile using the same gas pipelines that it used until 2006 to export gas to Chile, reported La Razón.
“We are replacing a product that costs us $10/MMbtu with another that costs us $7/MMbtu,” said Aranguren. “Obviously it is more than $3/MMbtu but there is not enough (Bolivian) gas.”
(Energy Analytics Institute, Jared Yamin, 23.May.2016) – Brazil’s Vice President of Foreign Affairs and Deputy in the Brazil National Defense Chamber of Brazil Luis Carlos Auli announced he wants an investigation into contracts signed between Bolivia and Brazil’s Working Party under presidents Luis Inácio Lula Da Silva and Dilma Rousseff.
The lawmaker also wants an investigation into former Bolivian Senator Roger Pinto, reported the daily newspaper El Diario.
(Energy Analytics Institute, Jared Yamin, 19.May.2016) – Bolivian exports to Brazil reached 24 million cubic meters per day on May 12, 2016 compared to 30 million cubic meters per day on May 8, 2016 while exports to Argentina reached 19 million cubic meters per day, up compared to 14 million cubic meters per day, respectively, reported the daily newspaper El Diario.
(Energy Analytics Institute, Jared Yamin, 18.May.2016) – The political situation that is affecting Brazil with the suspension of its President Dilma Rousseff will not affect negotiations with Bolivia regarding a natural gas sales and purchase agreement.
“Brazil has a need to supply its market with Bolivian gas and over time it’s foreseeable that we will maintain our agreements,” reported the daily newspaper La Razón, citing YPFB President Guillermo Achá.
Bolivia is concentrating efforts on additional exploration projects to continue fulfilling its contracts with Argentina and Brazil after fulfilling demand in the domestic market, said Achá.
A sales and purchase agreement — which expires in 2019 – establishes that Bolivia supply up to 31.5 million cubic meters per day of natural gas to Brazil.
(Energy Analytics Institute, Jared Yamin, 9.May.2016) – YPF has plans to participate in the Boyuibe and Ibibobo areas in Bolivia, reported the daily newspaper La Razón, citing Bolivia’s Hydrocarbon Minister Luis Alberto Sánchez. The company is close to closing deals related to these activities.
(Energy Analytics Institute, Jared Yamin, 9.May.2016) – Repsol President Antonio Brufau visited Bolivia to discuss overall investments in the small landlocked country with officials from YPFB and investments in three areas with similar potential as that in the Margarita field.
The three areas include Boyuy, Ipaguazu and Boycobo and contain an estimated 4 Tcf of natural gas, reported the daily newspaper La Razón, citing Bolivia’s Hydrocarbon Minister Luis Alberto Sánchez.
(Energy Analytics Institute, Jared Yamin, 9.May.2016) – France’s Total plans to boost natural gas production by 6.7 million cubic meters per day at Aquio Incahuasi.
The French company also plans to take part in the second phase of activities at the field whereby it plans to boost output there by another 6.7 million cubic meters per day, reported the daily newspaper La Razón, citing Bolivia’s Hydrocarbon Minister Luis Alberto Sánchez.
(Energy Analytics Institute, Jared Yamin, 9.May.2016) – Bolivia’s Margarita field is producing 20 million cubic meters per day of gas, reported the daily newspaper La Razón, citing Bolivia’s Hydrocarbon Minister Luis Alberto Sánchez.
(Energy Analytics Institute, Jared Yamin, 9.May.2016) – Bolivia’s National Electricity Company signed a contract with Siemens AG for $397.5 million to boost energy production in Termoeléctrica del Sur to 480 megawatts from 160 megawatts.
The project includes purchase of four gas turbines and four steam turbines with the addition of an estimated 320 megawatts with the idea to reach 480 megawatts at completion, reported the daily newspaper La Razón.
Recently, ENDE and Siemens signed a contract on May 5, 2016 for the Entre Ríos thermoelectric plant with the idea to boost output from 100 megawatts to 480 megawatts over two years with an investment of $378 million.
On April 28, 2016, ENDE and Siemens signed a contract for $392.5 million to boost output at the Warnes thermoelectric plant from 200 megawatts to 480 megawatts over two years.
Bolivia has announced plans to boost output at three thermoelectric plants – Termoeléctrica del Sur, Entre Ríos and Warnes – with an anticipated investment of $1.168 billion to produce 1,440 megawatts of energy.
(Energy Analytics Institute, Jared Yamin, 4.May.2016) – YPFB is planning activities in 86 exploration projects in 63 areas which will require an estimated investment of $2.4 billion, reported the daily newspaper La Razón, citing Bolivia’s Hydrocarbon Minister Luis Alberto Sánchez.
(Energy Analytics Institute, Jared Yamin, 4.May.2016) – YPFB Corporation reported profits of $364.1 million in 2015, down 72 percent compared to $1,299.5 million in 2014, reported the daily newspaper La Razón, citing YPFB data.
Table 1: YPFB Corp. Profits 2016-2020 ($ Mlns)
Year —- Profits
2006 —- $214.8
2007 —- $419.2
2008 —- $1,062.4
2009 —- $521.0
2010 —- $771.8
2011 —- $858.8
2012 —- $1,212.5
2013 —- $1,373.2
2014 —- $1,299.5
2015 —- $364.1
During 2006-2015, YPFB profits peaked at $1,373.2 million in 2013 and reached a low of $214.8 million in 2006, according to the data.
(Energy Analytics Institute, Jared Yamin, 4.May.2016) – With oil prices below $50 per barrel, YPFB plans investments of $12.681 billion during 2016-2020 under its Economic and Social Development Plan (PDES by its Spanish acronym) with assistance from private operators.
The majority of the investments, $7.2 billion or 57 percent of the total, will be destined for exploration and production activities in a move to boost production, reported the daily newspaper La Razón, citing an interview the daily conduced with YPFB President Guillermo Achá.
“Bolivia has important reserve potential with more than 60 Tcf of natural gas,” said Achá.
Bolivia’s earnings in the hydrocarbon sector are based on operating contracts whereby the state’s take away is an average 75-80 percent with the remaining 20-25 percent going to private companies, said the official.
“In many contracts that average is above 80 percent for the state,” said Achá.
(Energy Analytics Institute, 9.Oct.2015) – The Warnes Thermoelectric Plant, located in Bolivia’s Santa Cruz department, will provide 200 megawatts (MW) of energy to the country’s electric grid during its first phase of operations, according to a statement posted on the website of Bolivia’s Vice Presidency.
To-date, $171 million has been invested in the plant and another $400 million is planned to be invested in it in the future.
The plant, which will consume 50 million cubic feet per day (MMcf/d) of natural gas, will reach a capacity of 480 MW after the four planned phases of development are finalized.
(El Diario, 17.Sep.2015) – Results from the Lliquimuni exploration well are expected to be ready in late-October or early-November, reported the daily newspaper El Diario, citing Bolivia’s energy minister Luis Alberto Sánchez.
Investments in the well — to be drilled to a total depth of approximately 3,200 meters — are expected to approximate $47.5 million while the reserve potential is estimated at 50 million barrels (MMbbls) of oil and 1 trillion cubic feet (Tcf) of gas.
(Energy Analytics Institute, Ian Silverman, 24.Mar.2015) – Argentina is considering importing 200 megawatts of energy from Bolivia in 2015, announced Bolivia’s President Evo Morales.
The official also announced Brazil was also requesting more energy, without providing details, reported the daily newspaper La Razón.
“Perhaps this year we are going to start to export those 100 to 200 megawatts that Argentina is requesting,” said Morales during a visit to Cochabamba.
Bolivia has the capacity to export 100 megawatts of energy to Argentina and could slowly increase this capacity as projects come online, said Bolivia’s Hydrocarbon Minister Juan José Sosa Soruco on September 8, 2014.
“At this moment we cannot put our generation system at risk, so we can only consider 100 megawatts this year,” said Sosa. “By 2020 it is possible that we could be exporting 1,000 megawatts.”
Bolivia’s energy reserves are expected to increase this year from 300 megawatts to 500 megawatts with the Warnes thermo-electric plant in Santa Cruz department, according to a March 2, 2015 report from National Electricity Company (ENDE Corporación) President Eduardo Paz.
At the moment maximum electricity demand is 1,298 megawatts while the installed generating capacity on the National Interconnected System (SIN) or electricity grid is 1,600 megawatts, which leaves about 300 megawatts available, according to Paz.
“Our available resources for export are 300 megawatts now but with the addition of the Warnes plant his figure will increase to 500 megawatts,” said Paz. With the addition of the 200 megawatts from the Warnes project, Bolivia will be able to increase the capacity on the SIN to 1,800 megawatts.
During Morales’ nine year tenure as president, the capacity on the SIN has increased to 1,200 megawatts from 700 to 800 megawatts when he first entered office, the official said from Cochabamba.
Bolivia is working on the Yacuiba-Tartagal (Bolivia-Argentina) transmission line whereby it will be able to export excess energy to Argentina, said Morales.
(Energy Analytics Institute, Ian Silverman, 24.Mar.2015) – Bolivia is considering exporting energy to Brazil and Peru, reported the daily newspaper La Razón, citing National Electricity Company (ENDE Corporación) National and Export Development Stratgies Manager Roberto Peredo.
(Energy Analytics Institute, Ian Silverman, 15.Mar.2015) – We want to build relations with the United States based on respect, announced Bolivia’s Vice President Alvaro García Linera.
“When we got into to power, we had open relations with the United States which were friendly and based on confidence. We would like to return to this relationship. In the last 10 years Bolivia has increased commercial relations with the United States, but we have not seen such activity with diplomats. Until the United States shows us respect, we will continue to maintain a hard line with them,” reported the daily newspaper El Pais, citing the official.
(Energy Analytics Institute, 30.Sep.2013) – Information in this section, provided by Energy Analytics Institute editors and reporters, is hearsay and thus should be treated as such.
The names of our many sources have been withheld to protect their identities and family members in Venezuela.
A number of gasoline stations along VenezuelaColombia border remain closed due to a lack of supply. [El Universal]
Venezuelan Oil Minister and PDVSA President Rafael Ramirez was named as Venezuela’s Economic Vice President by President Nicolas Maduro. [EAI]
CROSS BORDER DEALS
T&T and Venezuela signed a cross border natural gas deal. Deal signed by Venezuelan Oil Minister Rafael Ramirez and Trinidad Energy Minister Kevin Ramnarine. [EAI]
Trinidad Energy Minister Kevin Ramnarine was been under pressure in Trinidad for recent agreements reached with Venezuela regarding cross-border commercialization deals for the Loran-Manatee gas fields. [EAI]
Central American energy connection could reduce prices from Guatemala to Panama. [El Espectador]
Colombia’s state oil company Ecopetrol announces new oil discovery at Guainiez-1 well in Guaroa. [EAI]
Chile’s ENAP sells 49% interest in Primax Peru and Primax Ecuador for $312 mln. [El Universo]
YPFB Corp. completed 23,141 domestic gas connections in May.2013. [La Razon]
Interconexión Eléctrica S.A (ISA) wins bid for design, financing, construction, operation and maintenance of Encuentro-Lagunas project in Chile. [Portafolio.co]
Peru’s Energy and Mining Ministry has identified hydrocarbon and electric sector projects worth $26,530 mln thru YE:20. [El Comercio.pe]
Electric consumption in Uruguay reaches 1,808 MW on Jun.20.2013 up from record of 1,745 MW achieved on Jul.4.2011. [El Pais]
EXPLORATION & PRODUCTION
Bolivian officials search for hydrocarbon investments and technology at Russian Gas Forum [La Razon]
Gas output in Bolivia reached 57.08 MMcm/d in the 1Q:13, up 24.2% compared with 45.94 MMcm/d in the 1Q:12. [La Razon]
Bolivia’s average production was 56.2 MMcm/d in the first five months of 2013. [El Espectador]
YPFB plans investments of $8,406 mln during 2013-2016. [La Razon]
YPFB Petroandina SAM President Jaime Arancibia announced the Lliquimuni block could contain 1 Tcf. [La Razon]
France’s Total announced plans to develop the 3 Tcf Incahuasi field in Bolivia, after drilling the ICS-2 exploration well. [La Razon]
Russia’s Rosneft is interested in investing in exploration and development activities in Bolivia. [La Razon]
Repsol’s oil production in Bolivia rose to 3,400 b/d from 2,600 b/d. [La Razon]
Ecuador’s Hydrocarbon Secretariat expects oil production to average 518,503 b/d in 2013, up from 503,610 b/d in 2012. [EAI]
Ecuador’s Hydrocarbon Secretariat expects the country’s petroleum sector will realize investments of $3.6 bln in 2013, up from $2 bln in 2012. [EAI]
Extraction of oil in the Yasuni National Park will utilize new technologies, Wilson Pastor said on state television. [EAI]
Ecuador gov’t cancels $34.5 mln committed by Germany for the protection of the Yasuni National Park. [EAI]
Mexico’s state oil company Pemex creates company to search for oil deep offshore and shale gas in the USA.
Venezuela’s Oil Minister Rafael Ramirez said during an interview on Venezuelan state television or VTV that the decision to stop sending oil to the US had to be taken by Venezuelan President Nicolas Maduro. [EAI]
Mexico’s left is betting on more autonomy for Pemex without changing the constitution.
Venezuela is looking for additional partner(s) for the Mariscal Sucre gas project offshore, Venezuelan Oil Minister Rafael Ramirez says. [EAI]
Spanish gov’t requests legal security and respect for the rules of the game in Argentina. [La Nacion]
Venezuelan imports of electricity from Colombia continue to increase. [El Universal]
Gas imported by Argentina and Brazil up 56.95% and 20.26%, respectively, in the 1Q:13 compared with the 1Q:12 [La Razon]
Argentina imported 14.63 MMcm/d from Bolivia in the 1Q:13 compared with 9.32 MMcm/d in the 1Q:12 [La Razon]
Brazil imported 32.01 MMcm/d from Bolivia in the 1Q:13 compared with 26.62 MMcm/d in the 1Q:12 [La Razon]
Bolivia exported an average 14.1 MMcm/d of gas to Argentina in the first five months of 2013. [El Espectador]
Bolivia exported an average 31.3 MMcm/d of gas to Brazil in the first five months of 2013. [El Espectador]
Enarsa owes YPFB $180 mln for gas deliveries made in Mar.2013 [La Razon]
PDVSA currently exports 330,000 b/d to India but plans to increase this figure to 400,000 b/d, PDVSA President Rafael Ramirez said. The official said PDVSA is also exporting 630,000 b/d to China. [EAI]
PDVSA owed $270 mln by Paraguay’s Petropar according to Paraguayan News Portal. [EAI]
FINANCE / EQUITY AND DEBT OFFERINGS
Ecopetrol $900 mln bond issue was oversubscribed by 3.1 times. [El Espectador]
Ecopetrol road show was led by Bank of America and visited fixed income investors in Singapore, London, Hong Kong, Chile and Peru. [El Espectador]
Ecopetrol road show led by Bank of America visited the following US cities: New York, Chicago, Los Angeles and Boston. [El Espectador]
Venezuela’s Central Bank (BCV) holds auction for $330mm with PDVSA bonds.
Venezuelan Debt to China:
China has loaned Venezuela nearly $40 bln to date, excluding new agreements signed recently between the countries, of which $20 bln has been paid back. [EAI]
Venezuela currently owes $20 bln to China, which represents almost 2.4 months of PDVSA’s revenues assuming oil prices above $100/bbl. [EAI]
Assuming China were to lend Venezuela another $44 bln, the country would owe the Chinese nearly $64 bln, which is about 6 months of PDVSA revenue with oil prices above $100/bbl. [EAI]
Venezuelan debt of $64 bln to China would represent almost 7.7 months of PDVSA’s revenues assuming oil prices above $100/bbl. [EAI]
Investments in energy projects in Peru to fall 50% by YE:20. [El Comercio.pe]
China’s Industrial and Commercial Bank (ICBC) could finance 70% of Pacific Coast refinery project. [El Comercio]
Colombia’s National Hydrocarbon Agency (ANH) said the country’s oil reserves were 2,377 MMbbls at YE:12. [Portafolio.co]
S&P and Fitch raise rating on Emgesa ISA to BBB from BBB-. [Portafolio.co]
Chinese executives with LinYi Cake Trade Co. visited Bolivia to inspect the construction process and advances at a pilot lithium battery plant in La Palca in Potosi. [La Razon]
Peru to prioritize $1,500 mln in investments for the integration of heavy oil lots in the northern amazon region [El Comercio.pe]
PDVSA has 15,000 workers in the Orinoco Heavy Oil Belt of Faja but plans to increase this figure to 40,000, PDVSA President Rafael Ramirez says. [EAI]
PDVSA, Cupet (Cuba) and Sonangol (Angola) agree to create JV to produce 20,000 b/d in the Faja. [El Nacional]
PDVSA reports in 10.Oct.2013 press release that it has a 71% interest in PetroCarabobo 1 Faja project, meaning the company assumed Petronas’ 11% interest. Partners in the PetroCarabobo 1 project now include PDVSA (WI 71%), OVL (WI 11%), OIL (WI 3.5%), OIC (WI 3.5%) and Repsol (WI 11%). [EAI]
Rising drilling costs in the Faja are just one of many issues companies are confronting today. [EAI]
Russia’s Lukoil announced plans to exit the Junin Block 6 project in the Faja.
EDITOR’S NOTE: Smaller Russian companies are starting to exit the Faja, ceding more control to Rosneft or other Russian entities; a signal that something could definitely be wrong in Venezuela and the Faja. [EAI]
PDVSA announced during the HOLA 2013 conference that it was looking to utilize its heavy oil techniques in Mexico. [EAI]
Repsol turns down $5,000 mln offer from Argentine gov’t regarding 51% interest expropriated in 2012. [La Nacion]
Ecuador’s President Rafael Correa says on Ecuadorian state television that US-based Chevron Corp. is an enemy of Ecuador. [EAI]
By 2015 Uruguay’s ANCAP expects to be exporting 5 MMcm/d of gas from the Puntos de Sayago regasification plant in Uruguay to Argentina’s YPF. [LaRed21]
Peru to prioritize $3,500 mln in investments for the petrochemical industry. [El Comercio.pe]
Peru to prioritize $3,500 mln in investments for the southern gas pipeline. [El Comercio.pe]
PROTESTS / STRIKES
About 50 workers with Petrocedeno JV in Venezuela demand that PDVSA respect their benefits [El Universal]
Peru to prioritize $3,514 mln in investments for the modernization of the Talara refinery. [El Comercio.pe]
PDVSA’s participation in Abreu e Lima Refinery in Brazil:
PDVSA President Rafael Ramirez says co. and Petrobras officials continue to discuss JV prospects regarding the Abreu e Lima refinery. [EAI]
From an operational and strategic business plan point of view, PDVSA’s participation in the Abreu e Lima refinery does not make sense. [EAI]
Abreu e Lima refinery in Pernambuco could easily source sufficient oil from the Brazil’s offshore pre-salt region w/o having to look to Venezuela for heavy oil. [EAI]
Any decision PDVSA President Rafael Ramirez takes regarding the company’s participation in Abreu e Lima refinery w/Petrobras will be politically based. [EAI]
Comments regarding Amuay Refinery explosion on 25.Aug.2012:
PDVSA President Rafael Ramirez says explosion at Amuay refinery was sabotage. Amuay refinery explosion was caused by gas leak at Block B23. As a result of the explosion, 42 persons were killed, 5 are still missing, 150+ were seriously injured. published by the Energy Orientation Center (COENER). [EAI]
Amuay refinery explosion to cost PDVSA an estimated $1.8 bln, according to COENER. The refinery is processing 645,000 b/d nearly 10 months after major explosion. [Ultimas Noticias]
PDVSA to spend an estimated $585 mln on maintenance activities at the Amuay and Cardon refineries, PDVSA President Rafael Ramirez says. [EAI]
CITGO Corp. donates 625,000 energy saving light bulbs to families in 21 cities in the USA [PDVSA
(Energy Analytics Institute, Ian Silverman, 12.Sep.2013) – The urea plant in Bulo Bulo, Cochabamba will generate 3,000 jobs, reported the daily newspaper La Razon, citing Vice Minister of Industrialization, Commercialization, Transportation and Storage Alvaro Arnez.
(Energy Analytics Institute, Ian Silverman, 11.Sep.2013) – Gas To Liquid International (GTLI) is in the process of returning four exploration areas to Yacimientos Petrolíferos Fiscales Bolivianos (YPFB).
There are 104 areas reserved for YPFB, reported La Razon, citing YPFB President Carlos Villegas. Of these areas, 53 have been designated for exploration activities while 51 are available for new contracts. Of the 104 areas, 76% have potential less than or equal to 0.5 Tcf, 17% have potential between 0.5-1 Tcf, and 7% have potential above 1 Tcf, YPFB said.