The exploration of new areas with hydrocarbon potential is planned through the drilling of the Tomachi-X1 IE, Tomachi-X2 IE and Madre Selva-X1 IE research wells.
The current panorama of hydrocarbon exploration in Bolivia is in a moment of transition and expansion. The Upstream Reactivation Plan (PRU) was initially conceived to address the decrease in hydrocarbon reserves and production, however, YPFB has been adapting and expanding its efforts, incorporating new exploratory opportunities in order to increase the probability of success in this area. . Within the framework of the PRU 2021-2025, several projects have yielded positive results, with eight of them successfully entering production.
In this context, the year 2024 is presented as a relevant period in the hydrocarbon exploration plan in Bolivia. The exploration of new areas with hydrocarbon potential is planned by drilling stratigraphic wells outside traditional areas, such as the Madre de Dios basin. La Razón spoke about these issues with the Vice Minister of Exploration and Exploitation of Energy Resources, Raúl Mayta, who provides all the details about the situation of prospective work in the country.
What is the current situation of the hydrocarbon exploration plan?
YPFB proposed the Upstream Reactivation Plan (PRU) to counteract the decrease in hydrocarbon reserves and production in Bolivia. It initially contemplated a portfolio of 30 exploratory opportunities. However, during the PRU execution period, YPFB has been incorporating new exploratory opportunities with the objective of increasing the probability of exploratory success. Of the projects planned in the PRU 2021-2025, it is observed that 11 had positive results, of which eight entered production.
What are the main projects that will be carried out in 2024 within the framework of the hydrocarbon exploration plan, both in gas and oil?
For this management, the exploration of new areas with hydrocarbon potential is planned through the drilling of the stratigraphic research wells Tomachi-X1 IE, Tomachi-X2 IE and Madre Selva-X1 IE, this expansion will open new opportunities for the economic and social development of our country. On the other hand, with the objective of increasing production and replenishing hydrocarbon reserves, this year the drilling of exploratory wells that are in the execution of previous activities is planned; such as the environmental license, civil works, budget approval and bidding for drilling services. Likewise, the drilling of the Mayaya Centro-X1 IE Well will continue, the result of which is expected to be obtained until the end of the first half of 2024.
What are the main investments that will be made in 2024 within the framework of the hydrocarbon exploration plan?
For the 2024 management, investments in hydrocarbon exploration and exploitation activities were programmed by the oil companies in the Work and Budget Programs (PTP) approved by YPFB within the framework of the Petroleum Services Contracts, as well as the investment that YPFB Headquarters carries out its Exploration and Exploitation activities on its own account. For this management, an initial investment amount of US$ 397.67 million is projected to execute hydrocarbon exploration and exploitation projects. An investment amount of US$ 276.89 million is allocated for Exploration projects, which represents 70% of the total amount, and US$ 120.77 million for exploitation projects, which also represents the remaining 30%. Also, it should be noted that 77% of the total programmed amount will be executed by YPFB Headquarters and its subsidiary companies.
In addition to the traditional zones for hydrocarbons (Santa Cruz, Chuquisaca and Tarija), are exploration tasks being carried out in other areas?
One of the visions of the PRU is the expansion of the exploratory frontier within the non-traditional hydrocarbon zone of Bolivia. In this sense, YPFB has been working on exploratory opportunities in the different geomorphological basins of the country, planning the drilling of Tomachi-X1 IE, Tomachi-X2 IE stratigraphic wells and execution of regional studies to increase exploratory maturity, such is the case of the regional hydrocarbon evaluation carried out in the Madre de Dios basin, where the possible presence of hydrocarbons is visualized.
How has investment in hydrocarbon exploration evolved in the country in recent years?
As a result of the hydrocarbon policy implemented, the increase in investments in exploratory activities carried out within the framework of the Petroleum Services Contracts stands out, such as by YPFB Headquarters, from the 2011 management to date, in which developed drilling projects and acquisition of geological data. As a result of the activities developed within the framework of the PRU, it has been possible to reactivate exploration, reaching an amount of investments for the year 2023 of approximately US$ 259.44 million, pointing out that more than 45% of the investments executed are those of YPFB with its role as operator.
What private operators are currently carrying out hydrocarbon exploration in Bolivia?
Currently, the companies YPFB Chaco SA, YPFB Andina SA, YPF E&P Bolivia, Vintage Petroleum Boliviana and Petrobras Bolivia SA are developing exploration activities within the framework of the current Petroleum Services Contracts. Likewise, it should be mentioned that approval is being sought by the Plurinational Legislative Assembly to begin exploratory activities in the Petroleum Services Contracts for the Ovai, Arenales, Florida Este and Tita-Techi areas, to be signed with the company Canacol Energy Colombia SAS Bolivia Branch.
In the past, various national authorities, including the current Minister of Hydrocarbons, Franklin Molina, spoke of the need to update the sector law to encourage private investment. What actions have been taken in this regard?
The Ministry of Hydrocarbons and Energy is preparing regulatory proposals to promote the execution of new investments in exploration and the replenishment of natural gas reserves and incorporate additional production of liquids to counteract the subsidy of hydrocarbons in the country.
It is appropriate to note the need to update the provisions of Law No. 3058, taking into account that the contractual model defined in the law did not produce the expected impacts, in the execution of new exploratory activities within the framework of new oil contracts, which which would have allowed the discovery of new hydrocarbon accumulations and consequently the replenishment of reserves.
It is clear that hydrocarbon exploration has evolved in the sense that the discovery of new reserves that allow the replacement of those already used is increasingly difficult, resulting in exploratory frontiers that extend to the drilling of deeper wells than It represents a higher operating cost, higher exploratory risks, which in turn mean a longer execution time to achieve the depths of the productive objectives.
This technical difficulty, accompanied by other economic variables, does not provide a scenario that promotes exploration investments by the companies participating in the contracts, under the current context of the hydrocarbon sector.
It must be considered that it is necessary to adapt the regulatory provisions that govern the activities of Exploration and Exploitation of Hydrocarbons within the Hydrocarbons Law, taking into account the pre-constitutional nature of the same and the provisions defined in the CPE, likewise, the Hydrocarbon Policy, considering the trend of decarbonization of the energy sector and the need to establish an incentive regime for Hydrocarbon Exploration and Exploitation activities, considering tax or tax exemptions, with the aim of promoting investments by oil companies.
