Bolivia delivers a moderate overall performance on our Upstream Risk/Reward Index, ranking eighth out of 10 Latin America region states and 44th globally. While the presence of a number of major international oil companies helps to bring more diversity to the competitive landscape, high levels of state involvement alongside heightened political and economic instability means Bolivia presents a more challenging risks profile compared to most regional peers.
The country's Gross Domestic Product (GDP) registered a variation of -11.11% to the second quarter of this year due to the COVID-19 health emergency that affected the world economy, according to data published by the National Institute of Statistics (INE).
The Government appointed Katya Diederich as the new Executive President of Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) to replace Richard Botello, who resigned this morning for health reasons. Diederich's appointment is a "historic milestone" at Yacimientos because, for the first time, a woman will hold the position. Katya is a business administrator, and has a vast experience in the Bolivian hydrocarbon sector since 1997, mainly in the company YPFB Chaco, then in GasTrans Boliviano (GTB) and YPFB Transporte, respectively.
Since August, the fire has destroyed at least 1.5 million hectares in Bolivia. According to the National Service of Protected Areas (Sernap), nine significant sites in the country, including protected areas, reserves and national parks, are affected by the fire. The government is managing international aid to alleviate the fires, and Spain has already sent specialized firefighters.
In recent days the municipalities of Ascension, El Puente and Urubichá, in the province of Guarayos, are being hit by a fire that threatens to consume homes in the communities. In all three areas, the community members are in the front line, faced with a small number of firefighters. In the most affected communities, there were about 150 families affected.