The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Carlos Villegas, President of the state-owned petroleum company YPFB.

The parties expressed positive opinions of the progress with the Memorandum of Understanding and addressed further opportunities for the bilateral cooperation in new promising projects. Special attention was paid to establishing joint ventures on hydrocarbons production and processing, as well as on services provision in Bolivia.

In addition, the parties highly appreciated the cooperation efforts within the Agreement to elaborate the General Scheme for the Bolivian gas industry development until 2030. It was noted that the General Scheme had to be ready by mid-2010.

The meeting participants also addressed the sci-tech cooperation and the issues of experts training for the oil and gas industry.

During the visit to Gazprom, Carlos Villegas got acquainted with the Central Production and Dispatch Department and appreciated the ability to provide the real-time flexible control over gas production and transmission regimes within the Unified Gas Supply System.

Background:

Bolivia’s proven natural gas reserves average 0.77 trillion cubic meters, oil – 60 million tons. The total natural gas reserves, both proven and probable are estimated at 1.5 trillion cubic meters. The major hydrocarbon reserves are concentrated in the Tarija area, namely, the four largest fields – Margarita, San Alberto, Itau and Sabalo (over 80 per cent of the total amount of reserves). Other promising gas-bearing provinces are Santa-Cruz (10.6 per cent) and Cochabamba (2.5 per cent).

In the oil and gas sector the state interests are represented by YPFB that has the exclusive right to participate on  behalf of the state in oil and gas projects and to sell hydrocarbons. Bolivia is  the major natural gas exporter to Brazil and Argentina.

On September 18, 2008 Gazprom, YPFB and Total E&P Bolivia signed the tripartite Memorandum stipulating the conduct of  joint evaluation of the Acero Block and representing another step towards the joint venture shaping to deal with hydrocarbons production in Bolivia.

On September 18, 2008 Gazprom, Petroleos de Venezuela S.A. and YPFB signed the Memorandum of Understanding to explore the possibility of the Company’s entry in the shareholding structure of Petroandina.

On April 8, 2009 Gazprom and YPFB signed the Agreement to elaborate the General Scheme for the Bolivian gas industry development until 2030.