Petrobras Bolivia SA, a subsidiary of Brazil’s state-run oil firm Petroleo Brasileiro SA, and Bolivia’s state-run YPFB Chaco have signed a $1.2 billion agreement to explore two natural gas fields with potential reserves of 4 trillion cubic feet, the Bolivian government said on Monday.
The fields are Astillero and San Telmo, in southern Bolivia. YPFB has a 40 percent stake in San Telmo while Petrobras has 60 percent. Petrobras has 40 percent in Astillero and YPFB has 60 percent.
The contract is for 40 years and both fields are expected to be producing gas in 2022.
(Reporting by Daniel Ramos; Writing by Caroline Stauffer; Editing by Jeffrey Benkoe)