Gazprom Digs in South America

On Sept. 18 Gazprom has signed up to joint gas discovery and mining company together with the Bolivian Yacimientos Petroliferos Fiscales Bolivianos (YPFB) and French Total.

Its going to be the first Gazprom's joint venture in South America.

Bolivian government promises 49% of earnings to Gazprom and Total, while other foreign companies get only 18% from gas output sales.

For such a huge amount of profit both companies have to contribute $4.5 bln. into the project.

Though all the matters are still under discussion - political unstability in Bolivia makes the project very risky.

Nevertheless, it's not the only Gazprom's project in this world region. The day after Bolivian agreement, Gazprom was among eight companies that signed deals to develop offshore gas fields with state-owned Petroleos de Venezuela at a ceremony presided over by President Hugo Chavez in the country's capital.

Author: Ksenia Kochneva