THE MINERAL INDUSTRY OF BOLIVIA 
159 
 
below that indicated by world oil prices. The low prices have encouraged
a high level of petroleum product contraband to Paraguay and Brazil. The
refining and sale of hydrocarbon products in Bolivia was performed exclusively
by YPFB, the state oil company. YPFB operated six refineries with a total
capacity of 84,600 barrels per day, compared with current refinery production
of 26,000 barrels per day. This capacity includes the expansion of the Valle
Hermoso (Cochabamba) refinery completed by A.G. McKee in November 1978 and
the Palmasola (Santa Cruz) refinery. The new refinery capacity places Bolivia
in a position to be able to increase exports of petroleum products. 
 In 1978 YPFB signed only one operations contract with Tesoro Bolivia Petroleum
Co. covering an area in the Department of Tarija. This brought to 20 the
total of contracts signed by YPFB with foreign oil companies since 1973,
of which only 6 were active as of the end of 1978. By yearend 1978, the contractors
had invested $199 million in the same period. YPFB invested $110 million
in exploration and development. During 1978 and 1979, the total of 11,240
meters drilled in exploratory wells was the highest ever. 
 As of December 1979, estimated reserves of crude oil were 170 million barrels,
including new discoveries. At 1979 rates of production, the country's proved
reserves would last about 16 years. 
 Uranium (Nuclear Fuels).—In February 1979, the Government and
the
Compagnie Générale des Matières Nucleaires
(COGEMA)
of France executed a letter of intent covering a $10 million exploration
program in eastern Bolivia for commercially exploitable uranium. The Bolivian
Nuclear Commission (COBOEM) will act for the Government in contracting with
COGEMA. 
 The COGEMA venture represents the second major attempt to find uranium in
Bolivia. During 1974-78 AGIP, a subsidiary of the Italian Government, spent
about $7 million prospecting in the Bolivian altiplano and in the South.
Although radiometric sensing of the exploration area showed encouraging anomalies,
the deposits proved too shallow to exploit commercially. 
 
 1Supervisory physical scientist, Branch of Foreign Data. 
 2Where necessary, values have been converted from Bolivian pesos ($b) to
U.S. dollars at the rate of $b20=US$1.OO in 1978 and $b20.75=US$1.OO in 1979.

 3National Association of Medium Miners. Annual R~ port 1978. La Paz, p.
11.