Bolivia’s YPFB to invest $400 million in new hydrocarbon exploration and development

Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) has announced plans to invest approximately $400 million in the development and exploration of a newly discovered oil system. The investment includes the construction of facilities and the drilling of three additional wells following the successful discovery of hydrocarbons with the Mayaya Centro-X1 Stratigraphic Research well (MYC-X1 IE).

The MYC-X1 IE well has confirmed the presence of hydrocarbons in the Sub-Andean North region of Bolivia, marking a significant expansion of the country’s exploratory frontier into non-traditional areas. Initial production tests in the Tomachi formation yielded positive results, with an estimated resource of 1.7 trillion cubic feet (TCF) of natural gas identified within the structure. Furthermore, at least five similar neighboring structures have been interpreted.

“We will have three additional drilling projects in the short term, including two delimiting wells in the Mayaya structure and an exploratory well in an adjacent structure to the east,” stated Armin Dorgathen Tapia, president of YPFB. “For the early start of production, we plan to transport an existing plant and build a pipeline from Mayaya to Senkata, as well as evacuate the liquids to Sica Sica. This will allow us, in a first stage, to cover the domestic gas market in the west. It is a pride for YPFB to make these investments.”

The new hydrocarbon field is expected to enter production within the next three to four years, with planned activities taking place outside of parks and protected areas. The drilling operations, carried out by Bolivian professionals from YPFB Corporation, have provided valuable insights into the geology of this non-traditional area. As the project operator, YPFB Casa Matriz, through its National Exploration and Exploitation Management, has already invested approximately $80 million.

“To date, tests have been conducted on the sands of the Tomachi formation with positive results, confirming gas production with associated condensate of 52 degrees API. There are still several levels to be tested,” explained Fernando Arteaga, National Manager of Exploration and Exploitation at YPFB.

The MYC-X1 IE well is located within the Lliquimuni Area in the Alto Beni municipality, part of the Caranavi province in the La Paz department. This discovery marks a historic milestone for Bolivia, which has traditionally produced hydrocarbons in the departments of Tarija, Santa Cruz, Chuquisaca, and Cochabamba. “With the drilling of the Mayaya Centro-X1 well, we are facing a historic event by discovering hydrocarbons in a new hydrocarbon province, such as the Northern Sub-Andean,” added Dorgathen Tapia.

Hydrocarbon exploration remains a priority for the National Government under President Luis Arce Catacora. The drilling of the MYC-X1 IE well aligns with YPFB's strategic objectives and the Upstream Reactivation Plan (PRU), aimed at replenishing hydrocarbon reserves, revitalising the oil sector, creating jobs, and improving the quality of life for Bolivians.