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Petrobras, Shell and Repsol sign gas deals worth US$1.6bn in Bolivia

The Bolivian government has signed natural gas development agreements with Petrobras, Shell, Repsol and Pan American Energy that are scheduled to draw US$1.6bn of investments into the country and boost the domestic production. The agreements cover several blocks in the Iñiguazu, San Telmo Norte and Astillero gas areas.



Pan American Energy, Repsol and Shell will take part in the Iñiguazu consortium together with the Bolivian state-held company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), while Petrobras and YPFB will partner in the other projects. Repsol is expected to lead the Iguazu consortium with Royal Dutch Shell as a minority partner, while Petrobras would lead the other two consortia. Iñiguazu is estimated to have the potential to produce an estimated 6.5 mcm/d of gas.



Bolivia, a major gas producer in Latin America, is seeking to boost its gas production and exports to Brazil and Argentina. Since 2000, its gas production has increased nearly fivefold, from 4.8 bcm to 22 bcm in 2016, while its gas exports surged from 2 bcm to 18 bcm over this period.