Force majeure on Bolivia gas, liquids output after leak: source

Rio de Janeiro (Platts)--6Apr2006

Force majeure has been declared on Bolivian natural gas and liquids
output "throughout the production chain" after ruptured pipelines in the
southern Tarija region shut in gas and liquids output there, a
well-placed Bolivian gas industry source told Platts early Thursday.

An 8-inch rupture in a Petrobras pipeline carrying about 20,000 b/d of
liquids from the gas fields of San Antonio and Margarita has entirely stopped
flow through the pipeline, the source told Platts on condition of anonymity.
Liquid storage at the fields is limited, and once it's full, gas production
will have to be fully shut-in as well, the source said. Gas production,
already reduced, could fully halt at San Antonio within a few days, the source
said.

A Petrobras spokesman in Rio de Janeiro declined comment.

Petrobras, which operates San Antonio, with normal production of more
than 10 million cu meters/d, has already lowered its gas nominations, the
source said. The source confirmed that exports to Brazil have fallen, without
detailing the current export flow.

Another well-placed Bolivian gas industry source who spoke with Platts
earlier Thursday said exports of Bolivian gas to Brazil have fallen by nearly
20%, to 21 million cu meters/d, from 26 million cu meters/d. Bolivian natural
gas exports in recent weeks had reached 33 million cu meters/d, divided
between Brazil and Argentina. Brazil has been relying on Bolivian natural gas
for about 60% of its daily natural gas consumption.

--Josh Schneyer, newsdesk@platts.com

For more information, take a trial to Platts LNG Daily at
http://www.LNGdaily.platts.com.


 

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.