Repsol-led consortium to invest $1.5 bn in Bolivia
REP | Quote | Chart | News | PowerRating -- A consortium led by Spain's Repsol YPF
plans to invest $1.5 billion to boost natural-gas production in the
Caipipendi block in southern Bolivia, with a view to both meeting
domestic demand and exporting the hydrocarbon to Argentina.
Repsol YPF Chairman Antonio Brufau made the announcement here
Thursday at a joint press conference with Bolivian President Evo
Morales, after the two had met at the presidential palace.
Brufau said the money will go to developing the Margarita and
Huacaya fields in southern Bolivia and boosting their combined
output from 2 million cubic meters (70.5 million cubic feet) per day
at present to 14 million cubic feet per day by 2013.
Repsol sources told Efe that the investment in the block will be
made by a consortium in which the Spanish firm has a 37.5 percent
operating stake, British Gas holds 37.5 percent and Argentina's Pan
American Energy owns 25 percent.
The consortium will undertake construction of a gas treatment
plant and develop the project in two phases. The goal is to produce
and transport 8 million cubic meters of natural gas per day by the
end of the first phase, in the first quarter of 2012, and 14 million
by the end of the second phase, in mid-2013.
Repsol YPF has not ruled out the possibility of increasing
production and investment further beyond 2013, since the Caipipendi
block in the Tarija and Chuquisaca regions holds proven gas reserves
of 3.7 trillion cubic feet and potential reserves of between 10-12
trillion cubic feet.
The Margarita and Huacaya fields that make up the Caipipendi
block cover a surface area of 123,000 hectares (474 sq. miles) and
include five wells that range in depth from 4,000-6,000 meters
(13,115-19,670 feet) and that were drilled between 1998 and 2008,
Repsol said.
"The basin is enormously prolific and rich. These proven reserves
could climb to 10-12 TCF as we learn more about the characteristics
of the subsoil," Brufau said.
Repsol noted in a statement that the Huacaya field was one of the
five largest gas finds made worldwide in 2008.
Brufau said the investment announced Thursday is the product of
negotiations between Repsol and Bolivia that took place during
Morales' visit to Spain in September.
The socialist head of state, for his part, thanked Repsol for its
plans to invest in the Andean nation and reiterated that his
government's policy is to welcome foreign companies as partners and
not "owners of (Bolivia's) natural resources."
As long as outside companies accept that partnership role,
"foreign investment is always welcome and respected," Morales said.
EFE
lav-sam/mc
For full details on Repsol Ypf Sa (REP) REP. Repsol Ypf Sa (REP) has Short Term PowerRatings at TradingMarkets. Details on Repsol Ypf Sa (REP) Short Term PowerRatings is available at This Link.
- Downtrend Spotted in Shares of Repsol (REP) - 02/05/10
- Aker Solutions wins NOK120m subsea equipment order from Repsol - 02/04/10
- Repsol Bearish Moving Average Crossover Alert (REP) - 02/03/10
- Hyperdynamics Extends Letter of Intent with Repsol - 02/01/10
- Repsol Downward Momentum Looks to Continue (REP) - 01/28/10
- More News >>
