Cochabamba.- PDVSA Bolivia, a subsidiary of Petroleos de Venezuela, and Yacimientos Petroliferos Fiscales Bolivianos (YPFB) created the mixed company Petroandina Gas, with Bolivian majority shareholding, complying with the commitment acquired by Presidents Hugo Chavez and Evo Morales last May.
The purpose of this company, where PDVSA holds 49% of the shares, is to industrialize a portion of the natural gas that is currently being exported. The company is framed in the energy integration policy being advanced by the Bolivarian Government under the principles of solidarity, complimentarity and mutual benefit of the peoples.
Petroandina Gas will build two (2) gas liquid segregation plants in Bolivia. The first plant will be located in the province of Gran Chaco, near the Yacuiba town, in the southern region of the country, and will require an investment of 100 million dollars. For this purpose, the state oil companies of Venezuela and Bolivia signed a letter of intent to “carry out the necessary steps” for setting up the plants.
The South Plant, as it is called, will have a processing capacity of 300 million cubic feet per day (MMCFD), and will produce 3,600 barrels per day of liquefied petroleum gas (LPG), and 854 barrels per day of natural gasoline.
With regards to the North Plant, it will be located next to Rio Grande, in the center region of Bolivia. During the first state, it will process 200 MMCFD to produce 3,570 barrels per day of LPG and 587 of natural gasoline. It will require an investment of 70 million dollars. The start of both plants is anticipated to take place during the first quarter of 2008.
Commitment with the Bolivian people
The Venezuelan Ambassador to Bolivia, Julio Montes, and PDVSA Bolivia Managing Director, Miguel Tarazona, along with YPFB President, Juan Carlos Ortiz, attended a ceremony in Yacuiba to confirm the construction of the first plant starting in the first quarter of 2007. The officers unveiled a plaque reflecting the commitment with the Bolivian people.
On the other hand, the authorities ratified an agreement for the incorporation of Petroandina Exploracion y Explotacion, another mixed company intended to develop projects throughout the entire value chain. The agreement was signed by the Bolivarian Republic of Venezuela and the Republic of Bolivia on January 23, 2006.