|World Bank to Disburse $19.5 Million to Bolivia Following Progress in Regulatory Reform||
Repsol Seek Alternatives for Gas Reserves 12 30 2003
Seek Alternatives for Gas Reserves
South American Business Information 12/29/2003 URL: http://www.rigzone.com/news/article.asp?a_id=10162
Following the re-negotiation of the gas exporting contract with Brazil, Petrobras has asked for a three years delay before to start purchasing of 30mil m3 per day of Bolivian gas. The current contract writes Petrobras should start importing this volume from 2004 onwards, while exports are around 20mil m3 per day, a little above the take-or-pay contract being reviewed since there is no demand to justify that. This contract is the largest source of income to the Bolivian Treasury that counted on an increase in the volume taken.
Meanwhile, Petrobras and Repsol-YPF are negotiating a 30% - 35% slash on the gas prices from US$1.80 to US$1.25 per million BTU. With the slash Repsol YPF counts to expand its presence in the Brazilian market, since the price is the major obstacle to raise the Brazilian gas demand. The company has under control 19,22 trillion cubic feet of gas, or 35% of the Bolivian overall reserves in addition to be a partner of Petrobras in the fields of San Alberto and San Antonio.
The pipeline came into existence due to the shared goals of two national administrations, a vibrant private-public partnership,and a sustained effort by the World Bank. The Bank helped put together a financing plan that included the Bank's first guarantee operation in South America.
VECO Canada is finalizing an integrity management program for the Bolivia-Mato Grosso (Cuiaba Integrated Energy Project), a natural gas pipeline that extends from eastern Bolivia to Cuiaba, Brazil. A key component of the program is the supply, implementation and commissioning of a state-of-the-art integrity management software application providing complete data integration, collection and management capabilities to the two companies operating the pipeline: GasOriente Boliviano Ltda. (GOB) of Santa Cruz, Bolivia and GasOcidente do Mato Grosso Ltda. (GOM) of Brazil.
The GOB/GOM project is one of VECO's first pipeline integrity management installations in South America. Frank Sugrabes, Gas Pipeline Manager of GOB/GOM said, "One of the key requirements of the project is to provide comprehensive and integrated information about our pipeline assets, maintenance and inspection activities, along with geographical, cultural and environmental data immediately across our two organizations through the use of relational database technology and GIS-based software. This project will also provide us a complete set of tools to conduct periodic risk assessments, collect future in-line inspection data, optimize the planning of our inspection and remediation activities and provide a central point of documentation."
The 400-mile long, 18-inch Bolivia-Cuiaba
from an existing 32-inch, pipeline near Santa Cruz, Bolivia, to a
thermal power plant in Cuiaba in the Brazilian Amazon.
by: OilOnline Wednesday, May 19, 1999
Bolivian natural gas producers expect to begin exporting approximately 2.2 million cubic meters per day (MMCM/d) this month through the $2-billion Bolivia-to-Brazil pipeline financed by Petroleo Basileiro S.A., the Brazilian national oil and gas company.
Pipeline capacity allocations were established by Bolivia's national oil and gas company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) primarily on the basis of a reserves study performed by DeGolyer and MacNaughton (D&M) for year-end 1998.
Delivery of gas to Brazilian markets is considered fundamental to the exploitation and development of Bolivia's gas reserves. Linking Santa Cruz de la Sierra in central Bolivia to Campinas, about 100 kilometers from Brazil's eastern coast, the 1,970-kilometer main trunkline will deliver gas to markets in the Brazilian states of Mato Grosso do Sul and Sao Paulo. An 1,180-kilometer leg to Porto Allegre near the southeastern coast is scheduled as a second-phase construction project.
Bolivia expects gas deliveries to reach 5 MMCM/d by year end. Throughput will average 18 MMCM/d over the first 7 years of the contract, which takes effect in 2000. Bolivia's commitment increases to 30 MMCM/d in 2007 and remains at that level for the duration of the contract. Over the next 20 years, Bolivia will provide more than 7 trillion cubic feet (Tcf) of gas to Brazil.
by: OilOnline Monday, June 14, 1999
Total Exploration Production Bolivia S.A.
natural gas reserves in Block XX West in the Tarija department, Gran
province, in southern Bolivia. Total is operator with a 41 percent
in the discovery. The first well drilled on the block, the Itau X-1 (A)
exploration well, was drilled to a total depth of 17,858 feet and
a 820-feet thick Devonian-age formation. In a drillstem test, the well
flowed gas at a rate of around 865 Mcf/d and 839 b/d of condensate
a 48/64-inch choke. Under normal operating conditions this well could
2 MMcf/d of gas ad 2,000 b/d of condensate. Further appraisals are
conducted and should provide a more precise indication of the
potential within a few months. Mobil Boliviana de Petroleos and Tesoro
Bolivia Petroleum Co. are partners in the discovery well. Also in
Total recently made other promising discoveries on the adjoining San
block. These reserves are strategically positioned for Total to supply
regional gas markets.
Petrobras Bolivia SA started production in the first development phase of Bolivia's San Alberto natural gas reserves as scheduled only 18 months after the project was launched. With a production capacity of 6.6 MMcm/d of gas, this initial phase is supplying the Brazilian gas market through the Bolivia-Brazil pipeline under a 20-year take-or-pay contract with Petrobras. Operator Petrobras Bolivia and partners TotalFina Elf and Empresa Petrolera Andina SA plan to increase gas deliveries to 12 MMcm/d when the project's second phase is brought on stream in 2002. Currently being launched, the second phase will have a production capacity of 6.6 MMcm/d of gas. The San Alberto project represents an initial step in developing the significant gas reserves recently discovered in the block as well as in the adjacent San Antonio blocks.
by: OilOnline Thursday, September 06, 2001
Parker Drilling Co. announced two new contracts for international rigs. The first, Parker Drilling Bolivia, a wholly owned subsidiary of Parker Drilling Company, has signed a contract with Pluspetrol Bolivia Corporation. The contract is for the completion and testing of the Rio Seco West X1 well located west of Santa Cruz, Bolivia. The well utilizes Parker Drilling's rig 121, which commences operation in early September. The project is estimated to last 60 to 90 days.
The second contract, Parker Drilling Nigeria Ltd, a wholly owned subsidiary of Parker Drilling Company, and The Shell Petroleum Development Company of Nigeria Ltd, have signed an extension on a 12-month contract with options to continue operations. The contract utilizes Parker rig 72, which has been under contract with Shell since July 1996. Rig 72 is one of the four Parker inland barge rigs currently operating in Nigeria, of which three are under contract with Shell.
serves the cities of La Paz, Cochabamba, Oruro, and Santa Cruz. The southern gas system originates at Yacuiba on the Argentine border and extends approximately
276 miles north to Río Grande.
This south-to-north pipeline, known as the Yabog, has two branches, serving the cities of Sucre, Potosí and Tarija in the southwest region of Bolivia. The southern system’s importance is based on its proximity to the natural gas fields of Margarita, San Alberto and San Antonio in the Gran Chaco province, department of Tarija. Bolivian regulations require Transredes to operate all pipelines under a fixed tariff regardless of distance, a system known as postage stamp tariffs.
In April 2003, Transierra opened Gasyrg,
a new 260-mile
pipeline which runs parallel to the Yabog pipeline. Gasyrg connects the
San Alberto and San Antonio fields,
Cross-border Natural Gas Pipelines
Bolivia-Brazil Pipeline (Río
Grande - São
Paulo - Porto Alegre)
Gas Transboliviano SA (GTB) owns and operates the 348-mile segment from Río Grande to Corumbá on the Brazilian border. Stakeholders in GTB include Transredes (51%) of which Bolivian pension funds make up 25.5%, Enron 12.75%, and Shell 12.75%, Gaspetro (9%), a subsidiary of Petrobrás, BBPP Holdings (6%) of which BG Group holds 2%, TotalElfFina 2%, and El Paso 2%, Enron (17%), and Shell (17%).
Transportadora Brasileira Gasoducto Bolivia-Brasil SA (TBG) operates the 1,620-mile Brazilian segment. Stakeholders include Gaspetro (51%), BBPP Holdings, consisting of British Gas, El Paso Energy and TotalFinaElf (9.66% each), Transredes (12%) of which Bolivian pension funds hold 6%, Shell 3% and Enron 3%, and Enron (4%) and Shell (4%).
Second Bolivia-Brazil Pipeline
(Río San Miguel
- San Matías - Cuiabá)
A more ambitious project was the so-called Gas Integration project (Gasin) which would transport natural gas from southern Bolivia through northern Argentina, where a spur would link to Asunción and eventually to Brazil. A feasibility study was set to be completed in June 2002, with operations starting in 2005. The $5 billion project, however, has yet to get off the ground, mainly to due to the lack of a viable market for natural gas.
Bolivia-Brazil Gas Supply Agreement (GSA)
Government delegations from Bolivia and Brazil have met repeatedly over the last six months in attempt to renegotiate the contract. Brazil wants to import less and pay less for natural gas from Bolivia, suggesting a more flexible agreement. Bolivia indicated after a meeting held in May 2003 that it would not change the contract unless Brazil would guarantee that exports would increase in the future. Bolivia outlined three conditions for reducing the cost of natural gas to Brazil: 1) 10-year extension to the existing GSA; 2) Brazilian government develops policies to promote natural gas consumption; and 3) current revenues from the contract to the Bolivian treasury are maintained.
In July 2003, the Brazilian government
responded by providing
the Bolivians with a nine-point plan, designed to expand the natural
market in Brazil. The program proposed creating an oil, natural
and renewable fuels department, expanding existing pipelines and
new ones, retrofitting refineries so that they can use natural gas as
for petrochemicals industry, and expanding the country’s natural
gas distribution network. The Brazilian government also indicated that
in return for their willingness to increase consumption, it would
like to see a 30% decrease in the price of natural gas.
have reportedly been paying US $1.94 per million Btu (without
transportation costs) while the Argentines have been paying $0.82
per million Btu.
The pipeline, which runs 3,150 km from Santa
via Sao Paulo, Brazil, to Porto Alegre in southern Brazil, is operated
by a subsidiary of Brazilian oil company Petrobras, called Gaspetro.
Currently, about 30-mil cu m per day of gas is
via the pipeline. The Bolivian and Brazilian governments approved an
of the pipeline's capacity in December 2001. The increase in capacity,
which is scheduled to go on-line in 2003, will allow Petrobras to
the amount of gas it is transporting through the pipe to 40-mil cu m
Due to the country's economic situation, the Bolivian government did not have the resources to dig for oil wells or develop the area. At the same time, president Gonzalo Sanchez de Lozada was leading the country through a de- nationalization reform and encouraging foreign investment in previously national companies. Therefore, the president's next step was to add the national oil company, Yacimientos Petroliferos Fiscales Bolivianos' (YPFB), to its list of privatizations.
In mid-1994, U.S. based Enron Corporation won
to develop Bolivia's gas resources by constructing, financing, and
investing and operating a pipeline.
The Bolivian gas endeavor began with
with Argentina. However, in January of 1996, the Paraguayan and
presidents signed an agreement proposing a new pipeline and natural gas
trading agreement. Plans for constructing another pipeline to Chile
also been in the making, but have been difficult. However, the
project is by far the most lucrative agreement, and has contributed to
a grandiose new scheme taken on by Enron of creating one continental
grid, with Bolivia as the natural gas hub supplying neighboring
Currently, Bolivia has 7.2 trillion cubic feet in natural gas reserves, a number expected to rise sharply once unexplored areas are tapped. Estimations for the length and width of the Bolivia- Brazil pipeline are 2,100 miles and 36 inches. The Bolivian government owns 60% of the pipeline within its borders and 20% within Brazil. The consortium of financiers; PETROBRAS (Brazilian Petroleum), the BTB consortium (British Gas, Tenneco Gas, and Australia's BHP Petroleum), and YPFB in conjunction with U.S. partners Enron and Shell, will be financing a project worth roughly US $2 billion. Of these, Enron will be primarily in charge of construction. The company hopes to break ground in the first half of 1997 and to finish by 1999.
Rio Grande (the region where the pipeline will originate) is located in the department of Santa Cruz, near the cities of Santa Cruz, Warnes, General Saavedra, and Montero. This region lies in the "Oriente", or eastern section of Bolivia closest to Brazil and Paraguay. The area's physical geography consists of subtropical forests and part of one of the world's largest remaining natural wetlands, the Pantanal, which extends into the north-west of Paraguay and the Mato Grosso region of Brazil. This fragile ecosystem is already being encroached upon by an advancing agricultural frontier resulting in overgrazing, deforestation of subtropical areas, pesticide pollution, and soil erosion. In addition, poachers have been wiping out large quantities of predator species, such as caiman, fox, jaguar, wolf and alligator, imbalancing the ecosystem. Although Sanchez de Lozada has proclaimed his firm commitment to sustainable development, the government has not made any concrete moves in this direction.
According to current forecasts, Bolivian gas would be transported from Bolivia's Rio Grande to Porto Alegre, Brazil, passing through Puerto Suarez and the Brazilian states of Mato Grosso do Sul, Sao Paulo, Parana, Santa Catarina, and Rio Grande do Sul, with possibilities of extending up to Rio de Janeiro and Belo Horizonte in Minas Gerais. Such a path would undoubtedly cross unprotected and undeveloped land in Bolivia, no doubt the most economically disadvantaged party in this entire scheme and therefore the most vulnerable to exploitation by member countries.
World Bank To
Maintain Support To Help Bolivia
WASHINGTON, February 19, 2003 - A delegation of the Government of Bolivia, comprising Foreign Affairs Minister Carlos Saavedra Bruno; Jose Guillermo Justiniano, Minister of Sustainable Development and Planning; and Roberto Camacho, Vice-Minister for Public Investment and External Financing, briefed the Bank's management Friday, February 14, on Bolivia's latest political and economic developments.
The ministers provided details of the tragic incidents in La Paz last week, and outlined the most recent economic and financial measures taken by the authorities to consolidate macroeconomic stability and foster restored growth.
World Bank officials stated the
readiness to continue working with the administration of President
Sanchez de Lozada and to maintain substantial financial and
support for Bolivia within the framework of a comprehensive strategy,
the overall objective of overcoming the current difficulties and
the quality of life of all Bolivians.