Antonio Brufau, Repsol’s chief executive officer, announced the investment after a meeting with Bolivia’s leftist President Evo Morales in La Paz.
Brufau added that in the area where Repsol will be investing there are proven reserves of 3.7 trillion cubic feet of natural gas, but the total amount could reach up to 12 trillion cubic feet.
Both Brufau and the head of YPFB Carlos Villegas said the bulk of Repsol’s production rise will be supplied to Argentina.
“We’re going to have enough output for the Argentine market,” said Villegas referring to a deal that Bolivia signed in 2006 to nearly quadruple natural gas exports to Argentina to 27.7 million cubic meters a day in the coming years from the current daily maximum of 7.7 million cubic meters.
The government Bolivia is reportedly renegotiating the terms of this contract with the Argentine government.
