1Spain has pointed out that Bolivia should make adjustments in its regulatory policy to attract investment in the hydrocarbon sector. What aspects of the current regulations should be prioritized for modification?

The hydrocarbon sector in Bolivia has high potential, and the interest of foreign entrepreneurs and investors is evident. In order for it to remain attractive, it is important for the regulation to be transparent, equitable, and clear in the incentives it offers, always respecting the interests of the country and the sovereignty of the Bolivian people over their own natural resources. Dialogue between authorities and companies in the sector is essential to determine which aspects of the regulations should be prioritized for modification and to identify the most appropriate regulatory framework according to their interests. The implementation of a new Agreement for the Promotion and Reciprocal Protection of Investments between Spain and Bolivia that improves legal certainty or a reduction in the tax rate would be an appropriate measure that could facilitate the attraction of foreign investment.

As an ambassador, I am committed to collaborating in the dialogue between the involved parties to seek solutions that are beneficial for both Bolivia and Spain, fostering a stable and attractive investment climate for Spanish companies.

2Is the Bolivian regulatory framework the main obstacle to investment in oil exploration, or are there other global reasons for the significant reduction in investment in the sector?

There are several global reasons that contribute to the reduction of investments in this sector. For example, the global demand for fossil fuels has decreased in recent years due to changes in energy and environmental policies in many countries, as well as the adoption of renewable energies and the pursuit of energy efficiency. The Russian invasion of Ukraine has demonstrated the need to reduce dependence on fossil resources.

The fall in oil and gas prices in international markets has also decreased the profitability of exploration and production investments worldwide.

3Spain has made significant investments in the hydrocarbon sector in Bolivia. Do you consider that the country maintains its high potential in this area?

Yes, Bolivia maintains its high potential in the hydrocarbon sector. It has a strategic position in the continent, being able to be the center of South American energy integration, thanks to its geographical location and its capacity to export energy to neighboring countries. It is necessary to ensure the continuity of exploration so that the country does not transition from being a strategic energy supplier to the region to an importer of hydrocarbons.

4How much has Spain invested in hydrocarbon projects in Bolivia in recent years?

Spain has historically been one of the main foreign investors in Bolivia, making significant investments in the energy sector. In particular, Repsol has been carrying out important operations in the hydrocarbon sector since 1994, focusing in recent years on reducing CO2 emissions in Bolivian wells.

Spanish investment in the first half of last year was around 65 million dollars (data published by the BCB). In 2021, it was 159 million dollars, of which more than 95% correspond to the hydrocarbon sector. Additionally, Spain traditionally invests in other areas of the energy sector, accompanying the country in the energy transition and the search for other sources of renewable energy. “I am aware that the government is working to implement the necessary measures to guarantee the future of the sector.”