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With a goal of producing 30 million cubic meters of gas per day, Petrobras invests US$40 million in natural gas in Bolivia to strengthen the fertilizer sector!

Written by Roberta Souza
Published 10/07/2024 às 13:27
“petrobras”, “brazil”, “bolivia”, “natural gas”, “petrobras Bolivia”
photo/reproduction: capital letter

Project aims to drill a well in San Telmo Norte, increasing natural gas production to meet the growing demand of the Brazilian industry!

A Petrobras announced an ambitious investment plan na Bolívia, with the aim of expanding natural gas production and meeting the growing demand from the fertilizer sector in Brazil. During the Bolivia-Brazil Business Forum, held in Santa Cruz de La Sierra, the president of Petrobras, Magda Chambriard, revealed that the company is ready to invest around 40 million U.S. $ in the drilling of a new well in the San Telmo Norte area, in the state of Tarija. This strategic investment, carried out through the subsidiary Petrobras Bolivia, promises to reinforce the energy partnership between the two countries, according to Cartacapital.

Expansion of natural gas production

O new venture, which is still awaiting approval from environmental agencies, aims to explore the potential of natural gas reserves in San Telmo Norte. It is estimated that the area can recover at least 76 billion cubic meters of gas, a significant volume to meet both the Bolivian domestic market and Brazilian needs. During the forum, Chambriard highlighted that Petrobras previously produced 9 million cubic meters per day in Bolivia, but intends to increase this number to 30 million cubic meters per day. “We want to return to these production levels to supply gas at affordable prices for fertilizers and petrochemicals in Brazil,” stated the executive.

Strategic importance for Brazil

Petrobras' decision to invest in Bolivia reflects the importance of natural gas for Brazilian industry, especially in the energy sector. fertilizers. Brazil, one of the greatest agricultural powers in the world, depends heavily on fertilizer imports. With the increase in natural gas production in Bolivia, Petrobras hopes to guarantee a stable supply at competitive prices, essential to enable the resumption of fertilizer production in the country. Furthermore, the growing demand for natural gas in Brazil makes Bolivian reserves a viable and strategic option for expanding this market.

“petrobras”, “brazil”, “bolivia”, “natural gas”, “petrobras Bolivia”
photo/reproduction: the globe

Brazil-Bolivia Partnership: challenges and opportunities

Despite challenges, such as need for environmental approvals and the decrease in gas production in Bolivia in recent years, the partnership between Brazil and Bolivia remains strong. Petrobras Bolivia currently operates in seven areas in the Andean country, being responsible for around 25% of total gas production. However, the future scenario presents opportunities, such as the potential reversal of gas pipelines to transport natural gas from Argentina to Brazil via Bolivia. “We are committed to exploring new opportunities and strengthening energy integration between our countries“, highlighted Chambriard.

Additional investments and prospects

In addition to Petrobras' investments, other Brazilian companies are also expanding their operations in Bolivia. A Fluxus, oil and gas subsidiary of J&F group, announced an investment of US$100 million by 2028 to increase production in three newly acquired fields. This movement reinforces confidence in the potential of Bolivian reserves and in the country's ability to continue being an important supplier of natural gas to Brazil. “We believe in the Bolivian market and are ready to make the necessary investments to guarantee a sustainable energy future“, concluded Chambriard.

Therefore, Petrobras' investments in Bolivia not only promise to increase natural gas production, but also strengthen the bilateral relationship between the two countries and ensure the sustainability of the fertilizer industry in Brazil. With an eye toward the future, Petrobras is prepared to face challenges and take advantage of opportunities that arise along the way.

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Roberta Souza

Petroleum Engineer, postgraduate in Commissioning of Industrial Units, specialist in Industrial Corrosion. Get in touch to suggest an agenda, advertise job vacancies or advertise on our portal. We do not receive resumes

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