A working meeting between Alexey Miller, Chairman of the Management Committee, and Evo Morales, President of the Plurinational State of Bolivia, took place today in the Moscow office of Gazprom.
The parties expressed appreciation for the ongoing implementation of joint projects for hydrocarbon development in the territory of Bolivia and discussed the opportunities for increasing the output of the Incahuasi field. Special attention was paid to the joint plans for geological exploration in the promising Vitiaqua oil and gas block.
The meeting participants noted on cost-effectiveness and eco-friendliness of natural gas compared to other fossil fuels and spoke about its potential in a variety of applications. In this regard, the parties reviewed joint plans for NGV market development in Bolivia.
At the end of the meeting, a number of documents aimed at expanding cooperation between Gazprom and Bolivia in oil and gas sector were signed in the presence of Alexey Miller and Evo Morales.
Vitaliy Markelov, Deputy Chairman of the Gazprom Management Committee and Luis Poma, Vice-President for Administration, Contracts and Supervision at Yacimientos Petroliferos Fiscales Bolivianos (YPFB), signed an Agreement of Strategic Cooperation. The document determines cooperation between the companies in a wide range of areas: geological exploration, gas production and transportation of hydrocarbons across Bolivia; development of the national oil and gas transportation infrastructure and NGV market; sharing best practices and personnel training; sci-tech collaboration.
Andrey Fick, Managing Director and CEO of Gazprom EP International B.V., and Luis Poma signed a Term Sheet regarding the contract for exploration and production in the Vitiaqua oil and gas block. The document will allow to move on to the next stage of drafting main project documentation.
Alexey Tyupanov, CEO of EXIAR, and Luis Alberto Sanchez, Minister of Hydrocarbons and Energy of Bolivia, signed a document to secure financing for supplies of natural gas fueled vehicles from Russian manufacturers.
In addition, Evo Morales visited Gazprom Central Control Room, and viewed a presentation of Russia’s Unified Gas Supply System – the largest gas transportation system in the world.
Bolivia is the third largest hydrocarbon producer in the South America. Annually it produces 20 billion cubic meters of natural gas.
Gazprom`s interests in Bolivian projects are represented by Gazprom International B.V. — a specialized company for implementation of overseas projects for prospecting, exploration and development of hydrocarbon fields.
Gazprom in partnership with Total S.A. (50%, project operator), Tecpetrol S.A. (20%) и YPFB (10%) participates in development of the Ipati and Akio oil and gas prospects, where Incahuasi field was discovered. Total (50%) and Gazprom (50%) implement a hydrocarbon exploration project in the Azero block.
In 2016, Gazprom, Bolivia’s Ministry of Hydrocarbons and Energy, and YPFB signed a Road map for implementing projects in the country. According to the Roadmap, parties will perform joint prospecting, exploration, production and transportation of hydrocarbons across Bolivia and will update the General Scheme for the Bolivian gas industry development until 2040. The Russian and the Bolivian companies also collaborate in the area of personnel development and training.
In 2016, Gazprom and YPFB inked an Agreement to explore the promising La Ceiba, Vitiaqua and Madidi blocks. The La Ceiba and Vitiaqua bloks are located in the Chaco oil- and gas-bearing basin in the Southern part of Bolivia, Tarija and Chuquisaca departments.
The Russian Agency for Export Credit and Investment Insurance (EXIAR) was established in late 2011, becoming Russia’s first export credit agency.