Chuquisaca Signs Multi Billion Oil Deal

(Energy Analytics Institute, Ian Silverman, 28.Jul.2018) – The agreement, signed between the Bolivian government and authorities from the department of Chuquisaca provides for initiation of work in more than 8 areas.

Announcement of the planned investments came after meetings between the government, and authorities and representatives from different sectors of this southern region. The signed agreement pretends to “leave behind moments of conflict of past months,” reported the daily newspaper El Diario.

Per the agreement, the department of Chuquisaca will benefit from investments to be destined for exploration and promotion of the hydrocarbon sector.

Between 2018-2021, an amount of $1.290 billion will be destined to several hydrocarbon deposits in the region. The remaining investment will come from an agreement reached last month in Moscow with Gazprom, during an official visit by Bolivia’s President Evo Morales, and in which the Russian company announced plans to allocate 1.224 billion euros to a hydrocarbon field in Chuquisaca.

Recent Conflict

In May, the department of Chuquisaca was virtually paralyzed for two weeks as main avenues and roads that connect the capital with the rest of the country — including access to its airport — were blocked.

The conflict stemmed from a decision by the government that said an important natural gas deposit was located in the Santa Cruz region instead of Chuquisaca, as originally thought.

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Author: ENERGY ANALYTICS INSTITUTE (EAI)

Energy Analytics Institute (EAI) is a Houston-based independent think-tank providing unbiased research, analysis, commentaries, opinions and breaking news related to the petroleum sectors in the Latin American and Caribbean regions.

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