Bolivia, selling gas to Argentina, banned the latter from reselling gas to Chile.
Bolivian Hydrocarbons Minister Carlos Villegas told media that Bolivians can rest assured because the gas will only serve the needs of Argentines.
Under the accord, Enarsa would explore and exploit gas, oil and other hydrocarbons in Bolivia, which has the second-largest gas reserves in South America, after Venezuela.
The contract, which runs from Jan. 1, 2007, foresees the sale of up to 27.7 million cubic meters of gas every day. The two parties expect to increase sale gradually and reach the maximum figure in 2010.
Bolivia and Chile broke off diplomatic relations in 1978, following the breakdown of negotiations for Pacific Ocean access. Bolivia lost its sea outlet in a 1880s war and has demanded an access to the Pacific Ocean since then.
