The Bolivian-Venezuelan oil company Petroandina has begun drilling an oil well for oil and gas in Bolivia.
The Timboy X2 oil well, located in Tarija, southern Bolivia, is estimated to hold reserves of up to 0.7 trillion ft3 of natural gas and 5.7 million bbls of oil.
The future of Bolivia’s nationalised oil and gas industry
Speaking at Petroandina’s drilling launch, Bolivian President Evo Morales saluted the decision taken some years ago to nationalise the country’s energy industry, but added that more need developments are needed in the future.
"We cannot stay here, we have to continue with not just greater exploration and exploitation, but also industrialisation," he said.
Joint venture between state oil companies
Carrying out the drilling is Treasury Petroleum Fields of Bolivia (YPFB) Petroandina SAM, a company created in 2007 as a joint venture between Bolivia's state oil company YPFB (60% stake), and Venezuela's state company, Petroleum of Venezuela (PDVSA), which has the remaining 40%.
Expected to produce between 3 - 7 million ft3 of natural gas, the drilling of Timboy X2 will last approximately one year and has seen a total investment of US$ 70 million.
"This well has the objective of finding new oil and natural gas reserves. That is how we are going to undertake a strategic plan for intensive exploration ... in Bolivia," said YPFB President Carlos Villegas.
Drilling at Timboy X2 is expected to reach a total depth of 5115 m.
Edited from various sources by Cecilia Rehn
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