La Paz, Bolivia (UPI) Jan 6, 2011
Bolivia is offering new perks to oil prospecting firms to speed the momentum of operations aimed at finding substantial hydrocarbon reserves.
Companies that invest and succeed in finding commercially viable oil or natural gas deposits will have their cash reimbursed.
Companies that fail to find oil won't enjoy the same privilege, however.
Bolivian President Evo Morales offered the incentive amid growing interest in Bolivian energy prospects, not least because of the oil barrel price nudging close to $100 in the international market.
Despite speculative "talked-up" oil quests continuing elsewhere, including the Falkland Islands in the South Atlantic, Bolivia has drawn major players to its oil sector -- but not as much investment as the government hoped.
The latest offer contrasted with an earlier, somewhat intemperate threat to take over the foreign oil companies' assets, which did little to reinforce investor confidence in Bolivia.
The incentive offer represented a step back by Morales, although the government presented it as a brand-new idea that no self-respecting oil investor could afford to ignore.
Analysts say Bolivia is awash in oil and gas and has a major export potential. Estimated oil reserves topped 441 million barrels by the latest estimates and are rated the fifth largest in South America. The natural gas reserves total 27.6 trillion cubic feet, ranking Bolivia behind Venezuela in terms of proven natural gas reserves in South America.
The government argues better exploitation of hydrocarbon resources would help propel impoverished Bolivia into the 21st century but it faces criticism on issues of good governance and transparency that critics say undermine progress.
State-owned energy company Yacimientos Petroliferos Fiscales Bolivianos said its offer had received positive response from companies operating in the country, including Spain's Repsol-YPF, a partner with YPFB in a state-controlled joint venture; Argentina's Pluspetrol; Brazil's Petrobras; French oil major Total; and British Gas.
YPFB President Carlos Villegas said that under the proposal: "The private company will cover the cost of exploration if the results are negative, all the losses will be assumed by the company and YPFB will have no obligations.
"If the results are positive, YPFB pledges through a mixed corporation to return 100 percent of the investment made in the exploration phase."
YPFB is also considering increasing the amount that companies receive per barrel, currently $10 even as international oil prices fetch more than nine times that much.
Renewed moves to attract private investment followed violent protests in December after the government withdrew fuel subsidies. The government restored the subsidies after the riots.
Share This Article With Planet Earth
Powering The World in the 21st Century at Energy-Daily.com
US oil spill probe blames bad management
Washington (AFP) Jan 6, 2011
A US panel skewered British giant BP as well as Halliburton and Transocean, saying management failures were to blame for the Gulf oil spill, and warned without reform such a disaster could happen again. Releasing a key chapter of its final report, the panel Wednesday also took aim at US government officials, sharply criticizing them for lax oversight of both the operation in the Gulf of Mexi ... read more
Iceland's Bjork in karaoke marathon against energy takeover|
Wake Up And Smell The Willow
Capstone Receives Follow-on Order For 6MW
Carbon Taxes Are The Answer To The Stalled Climate Negotiations
Bolivia offers perks to oil prospectors
Openness on oil revenues seen as key to Sudan peace
Japan traders eye giant Russia LNG project
Al Gore urges China, US to build greener cities
Keenan 2 Wind Farm Commences Commercial Operation
US challenges Chinese wind power subsidies at WTO
Italy wind farm seized by prosecutors
Outsmarting The Wind
Is The Hornet Our Key To Renewable Energy
New Dyes Improve Solar Technologies
UNI-SOLAR Brand Photovoltaics Set Sail
New Solar Cell Self-Repairs Like Natural Plant Systems
Taiwan's new nuclear plant delayed, operator says
Iran Rejects Claims Of Delays Linking Bushehr Nuclear Plant To National Grid
China announces new nuclear technology
Cleaning Up Nuclear-Contaminated Sites Faster And Cheaper
Household Sewage: Not Waste, But A Vast New Energy Resource
US Does Not Have Infrastructure To Consume More Ethanol
New Direction Of Bioenergy Research At University Of Idaho
'Dry-roasted' plants could be energy fuel
China Builds Theme Park In Spaceport
Tiangong Space Station Plans Progessing
China-Made Satellite Keeps Remote Areas In Venezuela Connected
Optis Software To Optimize Chinese Satellite Design
Broken Glass Yields Clues To Climate Change
Broken Glass Yields Clues To Climate Change
Back To The Dead (Sea, That Is)
Researchers Train Software To Help Monitor Climate Change
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|