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Gazprom Goes to Work in Bolivia
Gazprom has been able to conduct geological exploration on three blocks in the province of Tarija, Bolivia, after signing an agreement with the state company Yacimientos Petroliferos Fiscalis Bolivianos. The three blocks have total estimated reserves of 300 billion cu. m. of natural gas. After exploration is carried out next year, the formation of a joint enterprise controlled by YPFB will be discussed. The company is not revealing the investment involved, but one executive stated that it would be “billions of dollars.”
President of YPFB Jorge Alvarado announced in 2006 that Gazprom would invest $s billion in that country but this is the first project by the Russian monopoly there. A Gazprom source says that the monopoly is also considering oil and electricity production in Bolivia. Most of the gas deposits in Bolivia are nearly exhausted and the investment needed to produce gas there is high.
Political risks are also considerable. In May 2006, Bolivian President Evo Morales nationalized all hydrocarbon resources. Foreign companies operating in Bolivia were given 180 days to agree to hand over 82 percent of their income to the government or else leave the country. Gazprom is one of the first foreign companies to enter Bolivia sine the nationalization. In addition, the country's four gas-producing provinces, including Tarijo, have come into conflict with the federal government overt he distribution of profits from hydrocarbons and intend to hold a referendum on autonomy in May or June.
www.kommersant.com
All the Article in Russian as of Mar. 19, 2008
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