Bolivia Grants Oil & Gas Concessions to Petrobras, BG Group

Bolivia’s state oil company Yacimientos Petroliferos Fiscales Bolivianos awarded exploration concessions to Petroleo Brasileiro SA (PETR4) and BG Group Plc (BG/), according to state-controlled news outlet Agencia Boliviana de Informacion.

Petrobras won the right to the almost 100,000-hectare Cedro area in Santa Cruz department, while BG Group gained the 453,000-hectare Huacareta area in Chuquisaca and Tarija departments. Contracts for both awards must be signed by Feb. 28, 2013, the news agency said.

“Cedro is an important traditional area and it’s estimated that there’s a mega-field in Huacareta,” YPBF Vice President Luis Sanchez said, according to the statement published today.

The announcement came a day after President Evo Morales ordered the nationalization of the Bolivian operations of Iberdrola SA (IBE), Spain’s largest utility. Other companies bidding for the Cedro and Huacareta fields included Chevron Corp. (CVX), Ecopetrol SA (ECOPETL), Statoil ASA (STL), Korea Gas Investments Co., Tecpetrol SA, and China Petrochemical Corp., the Bolivian news agency said.

YPBF said the tender procedure was unsuccessful for Madre de Dios, La Guardia and Alegria.

To contact the reporter on this story: Brendan Case in Mexico City at bcase4@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net

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