Bolivia’s state-owned energy company YPFB has announced a groundbreaking natural gas discovery in La Paz, which could become the country’s third-largest producing field.
During a speech celebrating the 215th anniversary of Bolivia’s War of Independence, President Luis Arce revealed that the Mayaya Centro-X1 IE well has unlocked 1.7 trillion cubic feet (Tcf) of natural gas.
“We have invested over $44 million in exploration in La Paz, beginning with the drilling of Mayaya Centro-X1 IE in November 2022, reaching a depth of 6,000 meters,” said Arce. “During drilling operations, significant hydrocarbon reserves have been detected, and we expect to have all final results by October.”
This discovery has the potential to transform the La Paz region into a new hub for hydrocarbons, marking Bolivia’s largest gas find since 2005.
YPFB President Armin Dorgathen Tapia, in a separate press conference, stated that the Mayaya Centro-X1 IE well could commence production in the next two to three years. The development plan includes drilling an additional three wells and constructing pipeline infrastructure to export up to 10 million cubic meters of gas per day and between 500 and 1,000 barrels of liquids per day.
Since 2021, YPFB has been actively reactivating its upstream operations to discover more hydrocarbon resources. This new find comes at a crucial time, as Bolivia has been facing a steady decline in natural gas production over the past decade. The country’s output has decreased from 51.2 million cubic meters per day (MMcmd) in 2018 to 32.4 MMcmd this year, affecting gas exports to neighboring Brazil and Argentina.
The new discovery in La Paz offers hope for reversing this trend and bolstering Bolivia’s position in the regional energy market.