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  HOME | Bolivia

Chaco Oil Company Drills Exploratory Well in Central Bolivia

LA PAZ – Chaco, a unit of state-owned oil company YPFB, began drilling an exploratory well in central Bolivia over the weekend.

President Evo Morales attended the ceremony Sunday at which drilling started on the San Miguel X-1 well in Cochabamba, where the company is investing $18 million in the project.

Chaco plans to drill the San Miguel X-2 in the same region in the next few weeks and the Bulo Bulo Profundo well next year.

YPFB took over Chaco in 2009, when it nationalized Anglo-Argentine oil company Pan American Energy, or PAE.

The government reached a preliminary compensation agreement with PAE’s shareholders two months ago to stop an international arbitration filing.

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