According to the Bolivian Ministry of Hydrocarbons and Energy (MHE), Argentinean state company YPF has signed a study agreement with Bolivian state company YPFB in mid-August 2018 to evaluate the potential of the Sauce Mayu block. Initial investment was said to be USD 70 million, which will include the drilling of a well in 2019. A USD 588 million development plan will follow if results are positive.  The 458 sq km block is located in the Sub-Andean Zone of Chaco Basin on the Chuquisaca Department, with reportedly a potential of 2.7 Tscf of gas.  The Sauce Mayu block is situated around the Repsol-operated Monteagudo field, which has produced a total of 37.3 MMbo, 71.7 Bscf, and 279.9 Mbc from several different reservoirs since it was put on-stream in 1968. It is also adjacent to Totalâs Azero block where the operator is planning to drill two exploration wells with assumed target in the Huamapampa Formation.  Background Information  YPF made its first entry as an operator in Bolivia since the split of Repsol-YPF in 2012 with the signing of an exploration and production service contract for the Charagua block in July 2017.
YPF and YPFB have agreed to jointly evaluate the potential of the gas-prone Sauce Mayu block, 458kmÂ² in the Sub-Andean Zone.