According to the analyst Guillermo Torres Orías, the fine of Petrobras SA to YPFB due to the non-fulfilment in the delivery of gas volumes guaranteed in the GSA throughout 2018 is a consequence of a bad policy applied to the sector and worse long-term planning. The decision making in the hydrocarbons activity must have been of economic efficiency within the limits imposed by the technology and the energy security of the country. The State is responsible for ensuring the continuity of supply and long-term energy security, therefore, it must have built the systems to fulfil this responsibility. In the case of the original contract with Argentina, the addendums that reduce the amounts of gas guaranteed before paying fines for non-compliance confirm the fragility of the delivery schedule in relation to the country’s incremental production capacity. A delivery schedule such as the one negotiated would not have been acceptable, if a correct long-term planning was made in the production of the fields, considering the growing demands of natural gas in the domestic market and the amounts committed in the contract that was already in force with Brazil.
Organisations from France, Russia, China, Spain, South Korea, Japan and India expressed their interest in building a prospecting satellite for Bolivia. Within this context, the head of the Bolivian Space Agency (ABE) affirmed that India would be a “good” partner to develop technological entrepreneurship. He added that President Evo Morales has a “keen” interest for Bolivia to having a satellite to prospect natural resources.
Mining operators in Bolivia have to pay their 2019 and 2020 patent, or they risk to lose their concessions. The license is an annual legal requirement through which mining operators pay in advance to carry out their activities.
Last week Petrobras imposed a fine on Bolivia because during some months of last year the Bolivian state oil company (YPFB) sent only 22.6 million cubic meters (mcm) of gas when the demand was 26 mcm. The Gas Supply Agreement (GSA) signed with Brazil in 1996 – that expires this year- establishes a minimum purchase volume of 24 mcm of gas and maximum delivery of 30.08 mcm. If 1.5 mcm of fuel gas were included, a total of 31.5 mcm should be sent.
“A multi-point agreement has been signed, including the exploitation of Bolivian lithium, due to India’s interest in buying lithium carbonate, as well as a possible partnership to build a lithium-battery plant in India, ” announced Bolivia’s state lithium company (YLB) CEO, Juan Carlos Montenegro. The idea of the lithium-battery plant is still in a macro plan that should be worked on in the coming months.
The Economic Commission for Latin America and the Caribbean (ECLAC) raised the growth projection for Bolivia from 4.3% to 4.4%, which means that the country will head the list of nations with the highest growth in the region, in 2019.
President Evo Morales confirmed yesterday, that the Government of India is willing to invest U$D 13 billion in Bolivia’s hydrocarbons sector. The statement was announced during an act in the city of Cobija, Pando.
The Head of State referred to this achievement after the first meeting he held with the President of India, Ram Nath Kovind, in the city of Santa Cruz, on March 29.
During the meeting between the two leaders, a Joint Declaration was approved and eight complementary agreements were signed, that will benefit both countries. According to Morales, the areas covered the health, lithium and hydrocarbons sectors.
Bolivia had a trade surplus of more than US$500 million with India in 2018, said the CEO of the Bolivian Foreign Trade Institute (IBCE), Gary Rodríguez. Exports to India increased significantly since 2007. “Bolivia sold U$D 723 million and imported U$D 152 million, therefore the surplus reached U$D 517 million. We expect this kind of relationship in the country to shore up our International Reserves in the BCB.”
Bolivia has a 2030 development plan that will be based on lithium, affirmed President Evo Morales. He added that there are plans to build more than 40 lithium plants and some of them are under construction. The President pointed out, that the “2030 Plan” will also include the construction and industrialization plants of hydrocarbon gas pipelines to the Pacific.
According to Supreme Decree No. 3738 of December 7, 2018, the capital paid by the German company ACISA for a 70-year contract, at the time to constitute the Public Joint Venture with the Bolivian lithium state company (YLB-), was only US$ 739,224.