Repsol will operate the Iñiguazú field in Bolivia

  • The president of Bolivia, Evo Morales, and Repsol Chairman, Antonio Brufau have agreed that the company lead the exploration of Iñiaguazú field as part of a consortium made up of YPFB Andina, YPFB Chaco, Shell and PAE.
  • Exploration activities will be carried out in the area adjacent to Repsol’s Margarita-Huacaya field, the largest in the country.

The president of Bolivia, Evo Morales, and Repsol president Antonio Brufau held a meeting in Bolivia, during which they agreed that the exploration of the Iñiguazú field will be carried out by a consortium led by Repsol.

After the meeting, the agreement was signed by the consortium participating in the project, made up of Repsol E&P Bolivia S.A. (15% and operator), YPFB Andina (46.555%), YPFB Chaco (13.445%), Shell (15%) and PAE (10%).

At the signing, Evo Morales estimated that “around 900 million dollars of investment are necessary” for the operation to be successful. For his part, Antonio Brufau highlighted the commitment of the Spanish company to continue developing its activity in Bolivia.

The signing occurred during the Gas Exporting Countries Forum that is taking place this week in Santa Cruz de la Sierra.

The Iñiguazú block covers 644 km² and is located next to the Caipipendi area, where Repsol already operates the Margarita-Huacaya field—the largest in Bolivia, producing 19 million cubic meters of gas per day.

Repsol also holds the mineral rights for a total of 31 blocks in Bolivia: 6 for exploration and 25 that are in the development and production phase. In 2016, the group's total net gas production in the country amounted to 2.39 billion cubic meters, mainly at the Margarita-Huacaya field operated by Repsol.

REPSOL at a glance

Formed in 1987 by the merger of state-controlled oil sector companies, Repsol is now 100 percent privatized and publicly traded on both the Madrid and New York stock exchanges.

Repsol, S.A. is an integrated oil company headquartered in Madrid, Spain. The company engages in the exploration, development, and production of crude oil and natural gas worldwide. It has development and production assets in more than 20 countries, including the United States, Brazil, Trinidad and Tobago, Venezuela, Peru, and Bolivia; and exploration assets in the United States, Brazil, and Angola, as well as in Russia.

Production and reserves
Average production increased 23% in 2016 to 690,200 boe/d, mainly the result of contributions from assets in Brazil, Norway, Venezuela, North America and Peru.

In 2016, Repsol increased its oil and gas reserves to 2.382 billion barrels of oil equivalent, with a replacement rate of 103%. These reserves and projects already underway guarantee average production of 700,000 barrels per day through 2020, which will be maintained through 2025 by other discoveries already made and whose development will start in the next two years. In parallel with this production, the company will maintain a 100% average reserve replacement rate through 2020.

BOLIVIA OPERATIONS

Repsol holds the mineral rights for a total of 31 blocks in Bolivia: 6 for exploration and 25 that are in the development and production phase. In 2016, the group's total net gas production in the country amounted to 2.39 billion cubic meters, mainly at the Margarita-Huacaya field operated by Repsol.

The Margarita-Huacaya strategic growth project
The development plan for the Margarita-Huacaya area is one of the key growth projects for Repsol.

The Caipipendi Consortium, which is in charge of the project, is operated by Repsol, with a share of 37.5%, Shell (37.5%) and PAE (25%).

In Margarita-Huacaya six productive wells have been drilled. The most recent, MGR-5 and MGR-6, were completed in 2013. In the first quarter of 2015, two other wells will begin production: MGR-7 and MGR-8.

The first phase of the Margarita-Huacaya project began production in May of 2012. With the launch of the gas processing plant, along with the fluid collection system and gas pipeline and the finalization of the wells, total gas production rose from three to nine million cubic meters per day (Mm3/d) in 2012. The second phase was launched in October 2013, and gas processing capacity rose to 15 Mm3/d. In December 2013, production began at the Margarita 6 well, with six million cubic meters per day of gas, which makes it the most productive well in the history of the country and in all of the Sub-Andean basin.

In 2014 the third phase was approved, which resulted in production of 18 Mm3/d in the first quarter of 2016.

Boicobo and Boyuibe gas fields
In October 2016, the Ministy of Hydrocarbons and Energy of Bolivia signed an agreement with Consortio Caipipendi, operated by Spanish energy group Repsol (37.5%), Shell (37.5%) and national oil and gas company YPFB (25%), for the development of the Boicobo and Boyuibe gas fields in the southern Caipipendi block. The fields are estimated to hold around 5,000 bcf (more than 140 bcm) of gas and total investment could exceed US$1bn (at least US$350m in exploration and US$500m in development); US$500m will be invested over the next five years.

Iñiguazú
In November 2017, the president of Bolivia, Evo Morales, and Repsol president Antonio Brufau held a meeting in Bolivia, during which they agreed that the exploration of the Iñiguazú field will be carried out by a consortium led by Repsol.

After the meeting, the agreement was signed by the consortium participating in the project, made up of Repsol E&P Bolivia S.A. (15% and operator), YPFB Andina (46.555%), YPFB Chaco (13.445%), Shell (15%) and PAE (10%).

The Iñiguazú block covers 644 km² and is located next to the Caipipendi area, where Repsol already operates the Margarita-Huacaya field—the largest in Bolivia, producing 19 million cubic meters of gas per day.

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