The oil and gas equipment and services market in Bolivia

The economy of Bolivia is based mainly on agriculture and resource extraction, making Bolivia one of the poorest countries in Latin America. Approximately 14 per cent of exports are hydrocarbons. Starting in 1996, the oil and gas sector was privatised, resulting in the domination of multinational corporations. It is estimated that the natural gas reserves of Bolivia stand in excess of 2.2 trillion cubic metres. Equipment, materials, and services used in all stages of the oil and gas production and distribution chain are all in demand in Bolivia. Over the medium term, it is expected that pipelines and equipment required for gas-fired power plants represent the most important opportunity in the country. Incentives for vehicle and industrial conversion were included in the new domestic energy plan, as well as the extension of the domestic gas distribution system to 250,000 homes. Canadian geomatics capability could fill the requirements concerning the Bolivian oil and gas assets still in the exploration, development, and documentation stages. Companies with exploration and development contracts, companies producing from commercial fields, refinery operators, producers in the liquid propane gas and compressed natural gas sub-sector, as well as pipeline operators are all considered key players, in addition to the Bolivian Chamber of Hydrocarbons. The customers are sophisticated buyers who purchase based on technical specifications and price negotiations. There are no significant non-tariff barriers, and Bolivia has adopted liberal trade policies. 9 refs., 3 tabs