Page "Bolivian gas conflict" Paragraph 5

The issue was regarding Bolivia's large natural gas reserves and the prospect for their future sale and use.

The Bolivian gas reserves are the second-largest in South America, after Venezuela, and exploration after the privatization of the national oil company YPFB showed that proven natural gas reserves were 600 percent higher than previously known.

The cash-poor state-owned company could not afford the exploration costs.

These reserves are mainly located in the south-eastern Tarija Department, which contains 85 % of gas and petrol reserves.

According to the United States Department of Energy, another 10. 6 % is located within the department of Santa Cruz and 2. 5 % in the Cochabamba Department.

After further exploration between 1996 and 2002 the estimated size of the probable gas reserves was calculated to be 12. 5 times larger, passing from to.

This number has since declined somewhat to probable reserves.

The proven reserves are.

With the declining importance of tin mines, those reserves accounted for the majority of foreign investment in Bolivia.

The price which Bolivia is paid for its natural gas is roughly US $ 3. 25 to Brazil and $ US3. 18 to Argentina.

Other sources state that Brazil pays between US $ 3. 15 / MMBtu and US $ 3. 60 / MMBtu ( not including US $ 1. 50 / MMBtu in Petrobras extraction and transportation costs ).< ref >