The Azero block spans 78487 square kilometres of the departments of Chuquisaca and Santa Cruz in the east and central south of Bolivia.
The two companies have committed to investing $130 million during the exploration phase, according to Bolivian state outfit YPFB.
Bolivian president Evo Morales was present for the signing along with Gazprom International deputy director Roman Kuznetsov and Total’s senior vice president for the Americas Ladislas Paszkiewicz.
Morales said that the entry of a company as large as Gazprom offered the promise of a significant economic boost for Bolivia from the block.
YPFB president Carlos Villegas said that two exploration wells would be drilled during the exploration phase, with magnetollurgic and gravity surveys also envisaged.
Hydrocarbons minister Juan Jose Sosa said that in the event of a discovery, a joint stock company could be formed with YPFB on 55% and the international explorers on 45%.