Lliquimuni drillsite arises out of a cleared area in a cloud-shrouded forest

Lliquimuni test well in Bolivian Amazon fails

The joint Bolivian-Venezuela state oil company Petroandina has announced that its exploratory drilling well Lliquimuni Centro X1 failed to find commercially viable quantities of oil after 440 days of drilling. As previously covered here, the Lliquimuni oil block is among those posing the greatest future environmental risk in Bolivia due to its location in the fragile Amazon rainforest and the lack of any reliable infrastructure to pump oil and gas extracted at the site to outside markets.

The government of Evo Morales has made extravagant claims about the potential of the block, located in northern La Paz department, suggesting that as many as 50 million barrels of oil and 1 trillion cubic feet of natural gas may be lie beneath the ground there. However, the $170-million dollar effort to find this oil has yet to produce a successful result. While oil and gas exist below the site, the quantities found would not be profitable to extract.

Undaunted, Minister of Hydrocarbons and Energy Luis Alberto Sánchez pledged to La Razón:

We will continue exploratory activities in the north of La Paz. We will not rest in the search for hydrocarbons; if the first well was not successful, the news isn’t discouraging since will will continue exploration in other wells until we find the reservoir that we know is there.

“Seguiremos las actividades exploratorias en el norte de La Paz. No vamos a descansar en la búsqueda de hidrocarburos; si bien el primer pozo no fue exitoso, la noticia no es desalentadora porque continuaremos la actividad exploratoria en otros pozos hasta encontrar el reservorio que sabemos que se encuentra ahí”

Despite his perseverance, the odds against a major oil complex in Lliquimuni have just gotten longer.

Lliquimuni drillsite arises out of a cleared area in a cloud-shrouded forest

Lliquimuni: The petroleum threat in Bolivia’s northern Amazon

The Lliquimuni oil block could be the beginning of oil extraction in the northern Bolivian Amazon. This video, circulated by Alerta Amazónica, surveys the environmental dangers that accompany the project:

That beginning could come sooner than expected. On June 22, the Bolivian–Venezuelan consortium Petroandina announced “encouraging results” partway through the exploratory drilling at well LQC-X1. Company representatives expect to deliver a full report on the test well, which is operated by in  September.

Seismic studies carried out from 2008 to 2010 provided an estimate of 50 million barrels of oil in the area. Already last December, President Evo Morales was naming the underground oil reserves as reason enough to develop a large-scale petroleum industry presence in the northern part of La Paz department, a forested and mountainous area that lies to the north of the capital city of the same name.
“One the study is done, then comes the exploitation. I have said, if we find oil in La Paz, it will be our obligation to install a refinery here in the north of La Paz. Una vez hecho el estudio, perforación, vendrá la explotación. Yo lo decía, si encontramos petróleo en La Paz, será nuestra obligación instalar una refinería acá en el Norte de La Paz.
LQC-X1, the current center of exploration is near the community of Inicua, in Alto Beni municipality, part of Caranavi province (the municipality of Teoponte, in Larecaja province is nearby, and a border conflict driven by possible royalties was already active in 2014). Creating even this bit of petroleum infrastructure required something of an epic effort, perhaps inspiring the cinematic soundtrack for a promotional video from Petroandina. (You can see the government-owned oil company’s rather more heroic view of the project in the first two videos shown here.) Building either a refinery or oil pipelines out of the region would be a far greater challenge, which is perhaps the greatest factor holding back the transformation of the northern Bolivia rainforest into an oil-producing region.

Plurinational Bolivia cultivates new image as oil and gas state (in videos)

The Bolivian government of Evo Morales is enthusiastically celebrating two new finds of petroleum and gas this month, at the Boquerón-Norte well in the east and in the Lliquimuni block in the Bolivian Amazon. These findings come just as new presidential decrees have opened parks and environmentally protected areas to oil and gas drilling.  You can get a flavor of the government’s excitement by seeing some of its image production around these finds.

First is this wordless video produced by Petroandina (the Bolivian-Venezuelan consortium of state-run oil companies) celebrating the construction of the test well LQC-X1, which began operation last December. Preliminary results presented this week place this block as the place where large-scale oil drilling could come to the northern Bolivian Amazon. The soundtrack befits a cinematic drama, and the intent is clearly to make drilling for oil into a national heroic endeavor.Read More »