Bolivia's government announced on Feb. 5 the successful drilling of a new natural gas well with potential reserves of some 300 to 350 Bcf, a big find amid a domestic drop in hydrocarbon production.

The new Margarita 10 well, located in southern Bolivia and operated by Repsol E&P, will supply a volume of 3 million cubic meters per day starting in June, which would help Bolivia meet its export agreements with neighbors Brazil and Argentina.

"That means that we are going to have export capacity," Luis Arce, president of the Andean country, said at an event.

Bolivia's gas production fell in 2021 to about 45 million cubic meters per day, from 61 million cubic meters in 2014, according to data from the Hydrocarbons Ministry.

"YPFB and Repsol will make their best efforts to make this production available to the markets in the shortest time possible," said Armin Dorgathen, president of Bolivian state-owned oil firm YPFB.

The decline in hydrocarbon production means that Bolivia has had problems meeting its export contracts, in addition to shortfalls for supplying the domestic market.

Álvaro Ríos, analyst and former minister of hydrocarbons, said the new production would help calm tensions with Argentine buyers over a reduction in gas shipments, important as demand rises in the Southern Hemisphere winter.

"At least for this year it will be more sustainable (gas exports) because we will be able to comply with commitments with Argentina," he said.

In January-October last year Bolivia exported a combined 33.63 million cubic meters daily to Brazil and Argentina, data from YPBF show. The rest goes to the domestic market.