The Financial Times recently reported that Gazprom is considering a $2bn gas investment in production capacity in Bolivia which has vast gas reserves, second only to Venezuela in Latin America. As the article notes:

“…An official from the Bolivian hydrocarbons ministry confirmed the Gazprom deal with YPFB (Yacimientos Petrolíferos Fiscales Bolivianos), the Bolivian state energy company, could be about $2bn (€1.4bn, £1bn) and was expected to be finalised in 2008.

The official said the Russians were looking at gas exploration, either in two sites in Tarija, Bolivia’s main gas producing region in the south of the country, or in sites in Santa Cruz to the east and Chuquisaca in the south.

…the country is suffering from a lack of investment to boost production. President Evo Morales’ decision last year to nationalise energy resources has made many foreign energy companies wary of investing in Bolivia to boost production.Currently Spain’s Repsol-YPF, Petrobras of Brazil, Total of France and BG of Britain are the prominent foreign companies still operating in the country.

…To meet all its supply commitments, Bolivia will need to almost double production from about 39m cubic metres of gas a day to 75m in the next three years.Brazil’s Petrobras has just announced new investment of $750m in Bolivia in an effort to ensure future supplies for Brazil.

…Ms D’Apote estimates Bolivia would need investment of about $3.2bn in the next two to three years to meet its gas supply contracts – or double that level if liquids including oil and liquefied petroleum gas were taken into account.