CAPITAL: La Paz

MONETARY UNIT: Boliviano

REFINING CAPACITY: 47,888 b/cd

PRODUCTION: 28,000 b/d

OIL RESERVES: 131.9 million bbl

GAS RESERVES: 4,340 bcf

A new gas pipeline from Bolivia was due to deliver first gas to Brazil early in 1999. Exploration and development work were proceeding in Bolivia, but the country`s wells by themselves lack sufficient gas reserves to meet expected demand in Brazil.

The shortfall was 2.3 tcf early in 1998, estimated Wood Mackenzie Consultants Ltd., Edinburgh. Openings existed for E&P companies in Bolivia and Argentina to fill the gap, although margins to producers were expected to remain low initially.

Operators ran 8-12 rigs in Bolivia during the year, compared with 2-4 for most of 1997, BakerHughes reported.

The government believed energy sector investment would grow to $2.7 billion in 2000 from $802 million in 1997 and exploration spending to $1.3 billion from $380 million. Only about 1,600 wells had been drilled in Bolivia all time.

Transportation

Work began in August 1997 on the 3,100 km, 32 in. pipeline. The system was to be called Gas Trans Boliviana SA in Bolivia and Transportadora Brazileira Gasoduto Bolivia-Brazil in Brazil.

Brazil was seeking 18 million cu m/day of gas in the first 8 years with throughput reaching 30 million cu m/day by 2003.

Brazil`s Petrobras allowed access to the Bolivia-Brazil pipeline by third-party suppliers so that producing regions, such as Argentina`s Noroeste basin, could meet any shortfall in supply.

Wood Mackenzie reckoned that Bolivia`s remaining proved plus probable reserves on blocks under license as of mid-1998 amounted to 4.9 tcf of gas and 194 million bbl of oil. Bolivia`s domestic gas demand rose from 59 MMcfd in 1993 to 90 MMcfd in 1996.