Bolivia’s Incahuasi field brought into commercial production

Photo courtesy of Gazprom.

Incahuasi is one of the largest active gas and condensate fields in Bolivia. Its recoverable reserves are currently estimated at 70.8 Bcm of gas and 4.8 MMt of gas condensate. The field's first production stage has seen the construction of three wells, a comprehensive gas treatment unit with an output of 6.9 MMcmd, an in-field pipeline system, and an integrated production control system. A 100-km gas pipeline has been built to connect Incahuasi to the Bolivian trunkline system.

The field is already producing gas, with output expected to reach 6.5 MMcmd by year's end. Gas from Incahuasi is supplied to the domestic market and is planned to be exported to Argentina and Brazil.

On Thursday, Alexey Miller held working meetings with Evo Morales and Luis Alberto Sanchez. Noting the success of their joint hydrocarbon production projects in Bolivia, the parties expressed confidence that their strategic partnership in the gas sector would continue to thrive.

Gazprom's interests in Bolivian projects are represented by Gazprom International, a specialized company aimed at implementing hydrocarbon prospecting, exploration and development projects outside Russia.

The Incahuasi field is located within the Ipati and Aquio licensed blocks. The field is developed by a consortium consisting of Total SA (50%, project operator), Gazprom (20%), Tecpetrol SA (20%), and YPFB (10%).

Gazprom and Total also implement a hydrocarbon exploration project in the Azero block. The project's shareholding structure at the geological exploration stage is as follows: Gazprom – 50% and Total – 50%.

In 2016, Gazprom, YPFB, and Bolivia's Ministry of Hydrocarbons and Energy inked the roadmap for implementing projects in Bolivia.

In the same year, Gazprom International and Bolivia's Ministry of Hydrocarbons and Energy signed the agreement on updating the general scheme for development of the Bolivian gas industry until 2040. The scheme outlines the development areas of Bolivia's fuel and energy sector in the field of exploration, production, processing, transportation and marketing of hydrocarbon feedstock.

Also in 2016, Gazprom and YPFB inked an agreement on strategic cooperation, providing for joint efforts in exploration, production and transportation of hydrocarbons, construction and modernization of oil and gas infrastructure, and building of power generation capacities in Bolivia.

In addition, a memorandum of understanding was signed in 2016 to promote the use of LNG between Gazprom and Bolivia's Ministry of Hydrocarbons and Energy. The document reflects the intent of the parties to implement projects aimed at using natural gas as a fuel in passenger, freight and river transportation in Bolivia, as well as for autonomous gasification purposes.

Gazprom International and YPFB signed an agreement in 2016 to explore La Ceiba, Vitiacua, and Madidi, promising blocks located in Bolivia.

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