MercoPress. South Atlantic News Agency

New gas well found in Bolivia, expected to generate millions of dollars

Natural gas has been Bolivia's main export with Brazil and Argentina and its main destinations

Bolivian President Luis Arce Catacora has confirmed over the weekend the discovery of large gas reserves which -he hoped- would yield substantial profits to the country.

The new finding was, named the Margarita-10 well, is located at the Margarita-Huacaya field in the departments of Chuquisaca and Tarija, Arce said during an official appearance in Oruro. He also announced exploration work in the area has been going on since last year with “good results.”

“We are going to start exploiting this new reserve to increase gas revenues for the country, benefiting all Bolivians. These new reserves will also improve income from the Direct Tax on Hydrocarbons (IDH), benefiting autonomous governments,” Arce explained.

“We announce to #Bolivia that the explorations we started last year have been successful. We have found natural gas reserves in the Margarita-Huacaya field, located between Tarija and Chuquisaca, with a production potential of 3 million cubic meters per day,” Arce posted on Twitter.

According to Bolivian authorities, profits from Margarita-10 will add up to an annual income of US $ 260 million.

The Bolivian State-run gas company YPFB explained Spain's Repsol had began drilling this well in 2021 and also pointed out both companies planned to start production at the earliest.

Natural gas has been Bolivia's main export with Brazil and Argentina and its main destinations.

“Now I can safely tell you that this well has a production potential of 3 million cubic meters per day,” said Arce, who also hoped this new well will strengthen the State's investment capabilities in areas such as health, education and economic reactivation.

YPFB CEO Armin Dorgathen that the Bolivian company “in its technical role, and with the greatest responsibility, has taken all precautions to confirm this good news for the Bolivian people.”

Dorgathen added that “YPFB and Repsol make their best efforts to make this production available to the markets in the shortest time possible,” which shows that the state oil company works hand in hand with private companies that trust and invest in Bolivia.