YPF and YPFB advance with the exploration project in Charagua, Bolivia
La Paz, January 16, 2017. The chairman of YPF, Miguel Angel Gutiérrez, and the president of Yacimientos Petroliferos Fiscales Bolivianos ("YPFB"), Guillermo Achá, signed today a contract for the exploration and development of the Charagua block, located in Santa Cruz de la Sierra.
This agreement is a new step in the partnership between YPF and YPFB and arises from the first understanding reached by both companies in July 2016, which was authorized by Bolivia´s Legislative Assembly.
The signing ceremony took place at YPFB´s office in La Paz and was attended by the executive manager of Exploration of YPF, Carlos Colo, and other officials and executives from both companies.
Miguel Gutiérrez stated: "It is a pleasure to have achieved this important step in the alliance with YPFB. For YPF, exploration is a critical, strategic and fundamental element for generating new investment projects that will support the supply of natural gas to Argentina."
Additionally, Guillermo Acha stated: "After this signing, the contract will be sent to the Legislative Assembly for approval in accordance with article 362 of the Political Constitution of the State."
The Charagua block covers an area of 99,250 hectares, with estimated natural gas resources of 2.7 trillion cubic feet. If the technical teams accomplish a commercial discovery, the projected investment could be USD 1.1 billion for developing the block through a joint venture between YPFB (50%) and YPF E&P (49%).