Bolivia's oil and gas sector suffers investment drop and drilling slowdown

The executive director of Bolivia's Chamber of Hydrocarbons and Energy (CBHE), Iber Von Borries, said the 2006 nationalisation of hydrocarbons severely damaged investor confidence. He noted that the state’s share of revenues (the “government take”) now ranges from 82% to 95%, far above the 50‑60% typical in the region, and called for a new Hydrocarbons Law to restore legal certainty and competitiveness.

At the same time, industry experts warn that drilling activity has collapsed to an average of three to four rigs per month in 2026, down from 15‑20 rigs two decades ago. Production is falling, and analysts predict Bolivia could be forced to import natural gas as early as 2028‑29 if the trend continues. The lack of new exploratory projects and the dominance of state‑owned YPFB in the limited drilling program further hinder reserve replacement.

Both the investment climate and the operational capacity of the sector are seen as critical challenges for Bolivia’s energy security and economic outlook.