The discovery will increase reserves in the Caipipendi area as well as strengthen Repsol’s gas production capabilities in the South American country.
Located in southern Bolivia, the Caipipendi area is operated by Repsol and BG with 37.5% stake each, while PAE owns the remaining 25%.
Margarita-Huacaya is earmarked as one of Repsol’s key projects. By 2018, the company expects to invest up to $293m in phase three of the Margarita-Huacaya project.
Repsol owns mining rights to 26 blocks in Bolivia, including four exploratory licenses. The company currently produces 18 million cubic meters of gas.
In 2014, Repsol produced 14.6 million barrels of oil equivalent with majority from the Margarita-Huacaya block.
