Bolivia Announces Biggest Natural Gas Discovery Since 2005

• Bolivia has discovered its largest natural gas field in nearly two decades at Mayaya Centro X1, estimated to hold 1.7 trillion cubic feet of gas.
• The discovery brings hope for Bolivia to resolve its fuel shortage crisis and foreign currency crunch, as well as regain its position as a major natural gas exporter.
• The $50 million investment in the drilling project is seen as a significant step towards economic recovery and a new era of oil and gas production in Bolivia.

Bolivia’s state-owned oil and gas company YPFB has discovered a massive natural gas field, which is the biggest such find in nearly two decades and could become the country’s third-largest producing field. 

The discovery at the Mayaya Centro X1 natural gas field is estimated to contain 1.7 trillion cubic foot (TCF) of natural gas, Bolivia’s President 

Luis Alberto Arce Catacora said on X. This is the largest discovery in the country since 2005, the president added. 

Bolivia has seen rapid declines in its natural gas production in recent years amid struggles to find new resources. The country is currently grappling with a fuel shortage crisis and a crunch in foreign currency reserves.  

From a top ten natural gas producer worldwide once, Bolivia has now turned into a net importer of oil and gas. According to a 2023 warning by the Bolivian Institute of Foreign Trade, the country had become a net importer of hydrocarbons, AP notes. The latest statistics have shown that Bolivia spent $2.9 billion on diesel imports, while its earnings from exports of natural gas were just $2 billion. 

In addition, President Arce was the target of a failed coup last month in which the military tried to gain control of the presidential palace. 

Drilling at Mayaya Centro X1 began in November 2022 as part of a so-called Upstream Reactivation Plan by the Bolivian state-held company YPFB. Tests at the drilling well have confirmed the presence of gas and liquids in the middle and lower Copacabana and Tomachi formations.

The investment in the drilling project stood at $50 million and the discovery was made north of the Bolivian capital of La Paz, the president said. 

The discovery “marks the beginning of a new chapter” for Bolivia’s northern region, Arce said, adding that it offers hopes that Bolivia could keep its status as a large natural gas exporter and enter a new era of oil and gas production. 

By Tsvetana Paraskova for Oilprice.com

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