On 25 July on the margins of the 7th International Oil and Gas Congress 2017 held in Santa Cruz in Bolivia, Gazprom International and the Bolivian National oil and gas company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) signed the Memorandum of Intent to proceed to commercial negotiations on La Ceiba and Vitiacua Blocks. Currently acting YPFB Executive President Oscar Barriga and Head of the Gazprom International Branch office in Bolivia Andrey Nikonov have set their names to the document.
In the framework of the St. Petersburg International Economic Forum the Agreement on the study of La Ceiba, Vitiacua and Madidi promising Blocks was signed by the Parties in July last year. The Agreement included a preliminary one-year study of geological and geophysical data on these Blocks and preparation of Feasibility Study drafts.
The Memorandum signed on 25 July in Santa Cruz records that Gazprom International has performed the works on the study and evaluation of hydrocarbon reserves of the Blocks mentioned above, and the results have been accepted by YPFB. In addition the document reflects the partners’ concern for holding commercial negotiations on achieving the projects’ economic results acceptable for the Parties with the aim of signing the hydrocarbons exploration, development and production service contracts for La Ceiba and Vitiacua Blocks.
The Russian party considers the further study of Madidi Block cost-ineffective as of today.
In 2007 PJSC Gazprom and YPFB signed the Memorandum of Understanding.
Gazprom's interests in the Bolivian projects are represented by Gazprom International - a specialized company for implementing Gazprom's projects in the areas of prospecting, exploration and development of hydrocarbons outside the Russian Federation. The representative offices of the Company are operating in Santa Cruz de la Sierra and La Paz.
PJSC Gazprom in partnership with Total S.A. (50%, Project operator), Tecpetrol S.A. (20%) and YPFB (10%) participate in the projects pursuing the development of the promising oil and gas Ipati and Aquio Blocks, where the Incahuasi field is located. Besides, PJSC Gazprom (50%) together with Total (50%) implements a hydrocarbon exploration project in the Azero block.
In 2016 PJSC Gazprom, Gazprom International, YPFB and Bolivia's Ministry of Hydrocarbons and Energy
signed a number of documents on further cooperation among which is the Agreement on the preliminary study of the promising La Ceiba, Vitiaqua and Madidi blocks in the territory of Bolivia.
The La Ceiba and Vitiacua blocks are located in the Chaco oil- and gas-bearing basin in the southern part of Bolivia (Tarija and Chuquisaca departments). The Madidi block is a part of the Beni oil - and gas-bearing basin in the northern part of the country at the border with Peru.
The International Oil and Gas Congress is the most important event of the hydrocarbon sector in Bolivia and provides a platform for discussing challenges, changes and development prospects of the industry both in the region and globally. The Bolivian National oil and gas company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) has been the organizer of the Congress since 2011. Every year the event attracts more than 1000 participants from all over the world.