YPFB is now working to amend conditions to attract more investment. Credit: rafapress/Shutterstock.

YPFB, the Bolivian state-owned oil company, plans to allocate approximately $400m ($b2.7bn) towards drilling gas wells and constructing facilities at the newly discovered Mayaya natural gas field, reported Reuters.  

Situated north of the administrative capital, La Paz, the discovery is estimated to contain 1.7tcf of natural gas.  

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This investment is a strategic move to address the country’s energy shortages and bolster gas production within the next three to four years. 

YPFB believes that the region north of La Paz has the potential to reveal at least five more gas reserves of comparable size to the Mayaya field.  

Currently, the South American nation is grappling with an energy crisis that has impacted its currency reserves and economic stability. 

Earlier this week, YPFB CEO Armin Dorgathen said:  

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“This needed to be done many years ago, but we are doing it now.”  

In a recent interview with the news agency, Dorgathen highlighted the challenges faced by private companies due to payment issues, legislative hurdles and regulations under the country’s predominantly socialist governance.  

YPFB is now working to amend these conditions to attract more investment, particularly from existing partners such as Repsol, TotalEnergies and Petrobras. 

Bolivia’s Government is also reaching out to Russia, a key member of the OPEC+ coalition, for assistance in overcoming fuel supply shortages.  

The country, once a significant gas exporter to neighbours like Brazil, has seen a sharp decline in export revenue, leading to nearly depleted central bank reserves.  

Frequent protests due to dollar shortages and gas station queues have escalated tensions, causing rifts within the ruling socialist MAS party between President Luis Arce and former leader Evo Morales. 

These developments come in the wake of an unsuccessful military coup attempt against the Bolivian Government.