Repsol Chairman Antonio Brufau and Chief Executive Officer Josu Jon Imaz announced a new gas discovery in Bolivia at an event hosted by the President of that country, Evo Morales. The discovery, in the Margarita-Huacaya block, increases reserves in the Caipipendi area and bolsters Repsol's gas production in Bolivia.
Investment in phase III of the Margarita-Huacaya project is expected to reach $293 million by 2018, strengthening Repsol's commitment as a strategic partner of the Bolivian government. Repsol currently produces 18 million cubic meters of gas in Bolivia, having achieved early the production expected for 2016. Margarita-Huacaya is one of ten key projects in Repsol’s 2012-2016 Strategic Plan.
The event was held at the Margarita 7ST well site, where the discovery was made, and was attended by the Vice-President of Bolivia, Álvaro García Linera, the Minister of Hydrocarbons and Energy, Luis Alberto Sánchez, the Chairman of YPFB, Guillermo Achá and Repsol’s Executive Exploration & Production Managing Director, Luis Cabra.
The Caipipendi area is located in southern Bolivia and the block's consortium is made up of Repsol (37.5% and operator), BG (37.5%) and PAE (25%), within the framework of the operation agreement signed with Yacimientos Petrolíferos Fiscales Bolivianos.
Repsol has mining rights to 26 blocks in Bolivia, four of which are exploratory licenses and 22 of which are under development. Total net production in 2014 was 14.6 million barrels of oil equivalent, mainly from the Margarita-Huacaya block.