Seeking to Improve Gas Purchase-Sale Contracts Between Bolivia and Brazil
Authorities are looking for a new agreement for gas purchase-sale contracts between Bolivia and Brazil in a future deal.
In this regard, Franklin Molina, Minister of Hydrocarbons and Energies, indicated that the country is working with Brazilian authorities on a gas purchase-sale agreement that extends beyond 2026.
Molina stated that they are preparing a portfolio of exploratory projects to allow Petrobras to invest in the country, in addition to other aspects that would enable the signing of gas export contracts, confirming the arrival of a Petrobras mission in the coming days.
The gas purchase-sale contracts between Bolivia and Brazil represent a partnership that yields dividends for both countries.
The authority explained that as negotiations progress, agreements can be signed. “We are working to address macro aspects that are part of the agenda, the roadmap that commits investments in hydrocarbon exploration and exploitation and industrialization projects,” Molina emphasized.
Gas Purchase-Sale Contracts Between Bolivia and Brazil: A Win-Win Business
Regarding the question of whether the current Hydrocarbons Law aligns with the new needs for attracting investors, the minister was clear.
Molina reiterated that an update is necessary but did not provide details on when a new bill to replace Law 3058, approved in May 2005, would begin to be drafted.
Molina emphasized that Brazil wants to see YPFB (Yacimientos Petrolíferos Fiscales Bolivianos) as a partner of Petrobras in industrial plants being built on the other side of the border.
These proposals are the result of ongoing negotiations since the meeting of Presidents Luis Arce and Luiz Inácio Lula da Silva in the city of Belem.
Gas exports bring significant dividends to Bolivia. Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) generated revenue exceeding USD 3.4 billion from the sale of natural gas to the markets of Brazil, Argentina, and the domestic market between January and December 2022.
Between January and December 2022, an average volume of 16.79 million cubic meters per day (MMmcd) was dispatched to the Federative Republic of Brazil.
The gas purchase-sale between Bolivia and Brazil is led by Petrobras and other Brazilian clients, such as MTGAS, AMBAR, and TRADENER.
The gas purchase-sale contract between Bolivia and Brazil signed with Petrobras is the most significant one.
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