Gazprom, Total sign $130 million agreement with Bolivia's YPFB

LA PAZ Thu Aug 1, 2013 10:37am EDT

LA PAZ Aug 1 (Reuters) - Russia's Gazprom and France's Total signed a $130 million agreement with Bolivia's state energy company YPFB on Thursday to develop a natural gas area in the southeastern part of the Andean nation.

YPFB will have a 55 percent stake in Azero, an area of 785,625 hectares in the departments of Santa Cruz and Chuquisaca, said the firm's President, Carlos Villegas.

Bolivia has proven natural gas reserves of 11.2 trillion cubic feet (TCF), according to YPFB. Leftist President Evo Morales nationalized the country's energy sector in 2006.

YPFB expects some $500 million investment in the sector per year between 2013 and 2017.