Bolivian hydrocarbon industry faces survival crisis amid $340 million state debt

The Bolivian Chamber of Hydrocarbons and Energy (CBHE) has warned that the nation’s hydrocarbon industry is on the “threshold of its survival” due to a severe energy crisis and lack of investment.

According to CBHE spokesperson Zulema Espejo, the state owes approximately $340 million in pending payments to operating companies, a debt accumulated over nearly three years. These unpaid funds, part of the “retribution to the holder,” have hindered the ability of companies to reinvest in production. The industry is facing a decline in gas production and a failure to replenish reserves, raising the risk of a short-term need to import LPG.

CBHE President Mariano Ferrari outlined a three-pillar roadmap to address the crisis: preserving existing industrial capacity (including infrastructure and professionals), restoring investor confidence, and establishing a new regulatory framework. The sector is currently seeing significant operational deterioration; reports indicate that of the dozens of heavy drilling rigs in the country, only one is currently operational. This instability has reportedly led to the migration of approximately 6,000 specialized workers to other industries or foreign countries.