A unit of France's TotalFina SA has discovered 7.3 tcf of proven and probable natural gas reserves in a single field in Bolivia. The firm is stepping up exploration of the area, where it has already identified three other prospects.
The recent Itau discovery, on Block XX (Tarija West) in Gran Chaco province, brings TotalFina's share of total Bolivian gas reserves to 31%. As a result of the find, Bolivia's gas reserves now total 23.7 tcf (not 27.3 tcf, as reported in OGJ, Nov. 8, 1999, p. 36).
The Itau X-1-A well encountered gas-condensate pay in Devonian Huamampampa and Icla sands (OGJ, Aug. 16, 1999, p. 36). The field lies near the Argentine border, where most of Bolivia's large discoveries are being made.
Brazil's Petroleo Brasileiro SA discovered 8.8 tcf of natural gas reserves on nearby San Antonio block, and Maxus found 2 tcf on Caipipendi block, also near Itau.
TotalFina's Bolivia operations general manager, Dominique Laurier, said drilling and testing Itau X-1-A cost $35 million. The firm plans to spend $23 million on a second well plus $6 million on a seismic survey to identify areas for future exploration.
A separate 2-year exploration program costing $400,000 is being undertaken on nearby Beret
TotalFina is the operator of Block XX with a 41% share; Mobil Corp. holds 34%, and BG PLC 25%. BG came on board last month following its $100 million buy-out of the Bolivia operations of US firm Tesoro Petroleum Corp. (OGJ, Nov. 29, 1999, p. 28). Tesoro arrived in Bolivia in 1974 and was the first company to enter into an association contract with the state oil company, Yacimientos Petroliferos Fiscales Bolivianos, following the 1969 nationalization of Gulf Oil Corp.
Laurier says the entry of BG is a good opportunity and provides the consortium with a sense of balance. BG also could deliver good prospects downstream in Brazil, where it earlier this year successfully bid for the Comgas natural gas distribution company in Sao Paulo, and in Argentina, through its Metrogas distribution company in Buenos Aires.
"British Gas is good in the downstream and is looking for new reserves, which is what we can offer," Laurier said.
But TotalFina is, above all, concerned about getting its large gas reserves to market.
The company also has a 15% stake in the San Alberto block, operated by Petrobras. With San Alberto confirmed as having 8.8 tcf of natural gas reserves, Laurier is concerned about Petrobras's contractual preference over other producers in Bolivia in getting its natural gas to Brazil (see related story, p. 36).
"We don't want our Itau (field) to be spoiled by the development of San Alberto," said Laurier.
Whether TotalFina's elephant field, or the discoveries made by other companies operating in Bolivia, are spoiled may depend on how the Bolivian government manages to regulate Petrobras's preference in the months to come.
