A ceremonial event marking the start of commercial production from the Incahuasi field took place today in Bolivia near the city of Camiri.
The event was attended by Evo Morales, President of the Plurinational State of Bolivia, Luis Alberto Sanchez, Bolivian Minister of Hydrocarbons and Energy, Alexey Miller, Chairman of the Gazprom Management Committee, Guillermo Acha, Acting Executive President of Yacimientos Petroliferos Fiscales Bolivianos (YPFB), Michel Hourcard, Senior Vice President of Total S.A., Guillermo Miranda, Regional Director for Peru, Bolivia and Venezuela at Tecpetrol S.A., and heads of Bolivian regions and municipalities.
Incahuasi is one of the largest active gas and condensate fields in Bolivia. Its recoverable reserves are currently estimated at 70.8 billion cubic meters of gas and 4.8 million tons of gas condensate. The field's first production stage has seen the construction of three wells, a comprehensive gas treatment unit with a daily output of 6.9 million cubic meters, an in-field pipeline system, and an integrated production control system. A 100-kilometer gas pipeline has been built to connect Incahuasi to the Bolivian trunkline system.
The field is already producing gas, with the daily output expected to reach 6.5 million cubic meters by year's end. Gas from Incahuasi is supplied to the domestic market and is planned to be exported to Argentina and Brazil.
“The launch of the Incahuasi field is a landmark event for the energy industries of Bolivia and South America at large. Together with our Bolivian partners, we are pushing forward the continent's most advanced and cutting-edge industry, which, in its turn, serves as a powerful driver for the country's economy,” Alexey Miller said.
On Thursday, Alexey Miller held working meetings with Evo Morales and Luis Alberto Sanchez. Noting the success of their joint hydrocarbon production projects in Bolivia, the parties expressed confidence that their strategic partnership in the gas sector would continue to thrive.
In the course of his meeting with Evo Morales, Alexey Miller gave a presentation of a gas-powered KAMAZ tractor unit, a Gazprom-sponsored gift the Bolivian Ministry of Hydrocarbons and Energy had received from Russia at the International Business Congress held in St. Petersburg in May 2016.
The Chairman of the Gazprom Management Committee highlighted the strong prospects for Russian-Bolivian cooperation in the NGV market. “I hope that our cooperation will contribute to the social, economic and environmental well-being of Bolivia in the foreseeable future,” Alexey Miller said.
Evo Morales, in his turn, noted that KAMAZ vehicles were well-known in Bolivia for numerous victories in Dakar Rallies and expressed his hope that the number of such vehicles, including gas-powered ones, would increase in Bolivia.
Gazprom's interests in Bolivian projects are represented by Gazprom International, a specialized company aimed at implementing hydrocarbon prospecting, exploration and development projects outside Russia.
The Incahuasi field is located within the Ipati and Aquio licensed blocks. The field is developed by a consortium consisting of Total S.A. (50 per cent, project operator), Gazprom (20 per cent), Tecpetrol S.A. (20 per cent), and YPFB (10 per cent).
Gazprom and Total also implement a hydrocarbon exploration project in the Azero block. The project's shareholding structure at the geological exploration stage is as follows: Gazprom – 50 per cent and Total – 50 per cent.
In 2016, Gazprom, YPFB, and Bolivia's Ministry of Hydrocarbons and Energy inked the Roadmap for implementing projects in Bolivia.
In the same year, Gazprom International and Bolivia's Ministry of Hydrocarbons and Energy signed the Agreement on updating the General Scheme for the Bolivian gas industry development until 2040. The Scheme outlines the development areas of Bolivia's fuel and energy sector in the field of exploration, production, processing, transportation and marketing of hydrocarbon feedstock.
Also in 2016, Gazprom and YPFB inked the Agreement on strategic cooperation, providing for joint efforts in exploration, production and transportation of hydrocarbons, construction and modernization of oil and gas infrastructure, and building of power generation capacities in Bolivia.
In addition, 2016 saw the signing of the Memorandum of Understanding to promote the use of liquefied natural gas between Gazprom and Bolivia's Ministry of Hydrocarbons and Energy. The document reflects the intent of the parties to implement projects aimed at using natural gas as a fuel in passenger, freight and river transportation in Bolivia, as well as for autonomous gasification purposes.
Gazprom International and YPFB signed in 2016 the Agreement to explore La Ceiba, Vitiacua, and Madidi, promising blocks located in Bolivia.