Bolivia to increase natgas output - report

LA PAZ, May 12 (Reuters) - Foreign energy companies operating in Bolivia have agreed to increase natural gas production by nearly 10 percent, the head of state-run energy company YPFB was quoted as saying by local media Tuesday.

Some 13 energy firms including Brazil's Petrobras (PETR4.SA) (PBR.N), Spain's Repsol (REP.MC) and France's Total (TOTF.PA) have signed deals that would allow Bolivia to increase natural gas production to 44.68 million cubic meters a day from 41 million cubic meters, said La Paz daily La Razon.

"We've signed contracts on production, payment methods and the drafting of new development plans. The three deals are meant to guarantee an increase in production (this year)," Villegas was quoted as saying by La Razon.

Bolivia has the second largest reserves of natural gas in South America after Venezuela, and it is the region's biggest exporter, supplying the fuel to Argentina and Brazil.

Bolivia's energy production has been stable at around 40 million cubic meters a day for at least three years, despite previous government announcements that foreign companies were planning to invest heavily to boost output.

Leftist President Evo Morales nationalized the country's energy industry in 2006, raising taxes on energy investors.

He has seized control of several energy companies, including the largest pipeline operator, previously controlled by Ashmore Energy International (ASHM.L), and earlier this month Morales nationalized Air BP, a division of British oil major BP Plc (BP.L).

Brazil is expected to increase natural gas imports from Bolivia back to 30 million cubic meters a day this month due to increased demand from thermoelectric power plants.

At the start of the year, Brazil reduced its Bolivian gas imports from 30 million cubic meters a day to around 20 million cubic meters a day.