Russia's Gazprom, Bolivia Sign Multi-Billion Oil Exploration Deal

La Paz, Bolivia (AHN) - Russia and Bolivia signed a joint venture deal that would allow the exploration of South America's largest natural gas reserves located in the land-locked Latin American country.

The accord between the two countries, through state-owned companies Russian OAO Gazprom and Bolivian Yacimientos Petroleos Fiscales Bolivianos, covers three southern fields, including the Sunchal block.

Terms of the agreement were not disclosed, however, according to news reports the deal could be worth $2 billion.

Bolivia has been looking for foreign investments to tap into the country's fledgling oil industry. An estimated $3 billion funding is needed to increase production and supplies to neighboring Argentina.

In 2007, Gazprom concluded a preliminary agreement with Bolivia with Stanislav Tsygankov, Gazprom director of foreign relations, and Santos Ramirez, YPFB President, signing the agreement in the presence of Bolivian President Evo Morales.