MercoPress. South Atlantic News Agency

Another natural gas discovery in Bolivia.

A Bolivian partner of British Petroleum, Chaco announced the discovery of yet another natural gas field with reserves estimated in 0,3 billion cubic feet, in west Bolivia.

The "Parcheles X1001" well is sixty kilometers southwest of Bolivia's oil city Santa Cruz. Apparently besides natural gas, an estimated 4 to 6 million barrels of oil have also been identified.

Chaco's CEO Octavio Pastrana said the discovery is of great relevance for Bolivia and Santa Cruz given the "current situations of uncertainly and instability of the industry".

The Bolivian government is scheduled to present in Congress a new hydrocarbons bill to replace the current 1996 bill which opened Bolivia's oil industry to foreign investors.

The new bill will be highly conditioned to the results of the recent referendum when a majority of Bolivians approved greater taxes on extracted oil and gas, as well as a larger participation of the government in the industry and the industry's decisions.

"We hope Congress will respect established contracts between oil companies and Bolivia, and that the new bill will not make the industry non viable", said Mr. Pastrana.

According to official oil industry data, Chaco's holdings of natural gas are equivalent to 4,2% of Bolivia's total reserves estimated in 52,3 trillion cubic feet.

Chaco together with British Petroleum and Panamerican Energy has invested in the industry over 605 million US dollars since 1997, revealed Mr. Pastrana.