The Bolivian government has announced the discovery of one trillion cubic feet (TCF) of natural gas reserves to be exploited starting next year.

The new Boicobo Sur–X1 reservoir, located in the Huacaya region of the southern Department of Chuquisaca is operated by the Spanish company, Repsol with participation from Shell and PAE.

In making the announcement at a press conference on Thursday (December 24), Bolivian President Luis Arce, together with the Minister of Hydrocarbons and Energy, Franklin Molina, were elated at the discovery.

For his part, President Arce remarked, “In times of crisis, good news is twice as exciting. We have worked with dedication, with vision and determination, and after years of searching the award has come to us at the best moment. And today I can tell you that our country receives one of the best Christmas gifts with this discovery. ” 

He added that, “during the de facto transitional government, the hydrocarbons sector in our country faced gloomy moments, mismanagement of Bolivian national assets and negligence, which have led to the loss of productivity in one of the most relevant sectors for the generation of wealth for Bolivians.”

Ministry of Hydrocarbons and Energies entrusted to start giving positive results

President Arce declared that he has personally entrusted the current managers of the Ministry of Hydrocarbons and Energies and of the state company, YPFB, to do their best to start giving results as soon as possible, since the country needs the contribution of its natural resources to withstand the serious crisis caused by the global pandemic, which he argues, “plagues a large number of countries around the world.”

The Ministry of Hydrocarbons and Energies as head of the sector has a plan to increase the hydrocarbon reserves of Bolivia. As such, different projects are being worked on with the objective of ensuring energy sovereignty in hydrocarbon matters and contribute to the strengthening of the Bolivian economy.

“Mother nature is providing us with a megafield containing about 1 TCF in reserves,” said President Luis Arce said at the press conference. The drilling of the well began in October 2019 with an investment of about $74 million, and reached more than 5,000 meters in depth.

Bolivia has an abundance of gas reserves

Bolivia has 10.7 TCF of gas reserves that guarantees supply to the domestic market and its export commitments to Argentina and Brazil, according to official data. TCF refers to a volume measurement of natural gas used by the U.S. oil and gas industry.