LA PAZ, Jan. 23 (Xinhua) -- The state-owned oil company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) and its subsidiaries are planning an investment of 756 million U.S. dollars this year to reactivate the sector in exploration, exploitation and production, Bolivian minister of hydrocarbons, Franklin Molina, said Saturday.
"The main challenge of these investments is to increase and replace the hydrocarbon reserves of both natural gas and oil. This will allow us to direct our exports and guarantee the domestic market," the official told a local radio network.
The minister said that the government's strategy involves launching explorations and increasing production to satisfy domestic demand as well as foreign markets such as Argentina and Brazil.
According to the Bolivian oil company, the government will prioritize projects such as the drilling of the Margarita-X10 well in the departments of Tarija and Chuquisaca and the Boicobo Sur-X1 well in Chuquisaca, which holds an estimated one trillion cubic feet of natural gas.
According to Molina, substituting subsidized gasoline and diesel imports is also another objective of the oil company, in addition to resuming hydrocarbon industrialization projects and reactivating operations at the Bulo Bulo Urea and Ammonia Plant in Cochabamba.
He added that the investment scheduled for this year will guarantee the production of gasoline, liquefied gas and renewable diesel to reduce the country's dependence on imported fuel.
In addition, he said that the Bolivian oil company will venture into the production of renewable diesel and continue to provide Bolivians with natural gas in their homes.