It’s Time Bolivia Partakes in Brazil’s Gas Windfall

    The Bolivian minister of Hydrocarbons, Andrés Soliz Rada, says that Bolivia will run audits on foreign oil companies to determine just how much they have invested in the country over the last decade.

    "Everything depends on the audits. Based on the results of the audits we will decide what kind of contracts we draw up and future taxation policy," declared Soliz Rada.

    As part of the nationalization of the country’s oil and gas reserves announced on Monday, May 1st, all contracts with foreign operators in the country were cancelled. New rules and new contracts are supposed to be ready within six months.

    According to Soliz Rada, the government of Bolivia will draw up and present the new contracts which will mean important changes in the present situation.

    "The government will no longer have to comply with contracts drawn up by the oil companies, which was what happened in the past. Now the companies will have to obey government contracts," he said.

    As an example of what he was talking about, Soliz Rada pointed out that the Brazilian company, Petrobras, was paying 50% in taxes to operate two large gas fields, but now pays 82% in taxes. The two oil fields supply 70% of the gas exported to Brazil.

    "Studies we have made show that Petrobras paid off its investment in those gas fields some time ago. Now it is time for the Bolivian people to get in on what has been an extraordinary deal," said the minister, adding that as Bolivian gas accounts for 80% of Brazilian consumption, "There is a lot of interest in ensuring that the gas flow is not interrupted."

    Soliz Rada also commented on the fact that Bolivia has now nationalized its oil and gas resources three times. He pointed out that with the second nationalization in 1969, the country confiscated gas reserves worth an estimated US$ 3 billion. But with this week’s nationalization, the country has confiscated reserves worth an estimated US$ 250 billion.

    Agência Brasil

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian writer Jorge Amado

    The Discovery of the Brazilian Turks by Jorge Amado

    Welcome to a universe of strong men and sweet, sensual women with strong personalities. ...

    American WWII Plane Found in Brazil’s Amazon

    A Brazilian archeological team from the Joaquim Caetano da Silva Museum, in Macapá, capital ...

    Brazil’s Embraer Files Suit Charging Gulfstream with Stealing Its Employees

    Brazil’s aircraft maker Embraer has filed a lawsuit against American-based Gulfstream, a manufacturer of ...

    Sugarcane harvest in Brazil

    Brazil’s True Energy Lesson: Making Oil Production a Priority

    Advocates of Brazil's energy policies often cite Brazil's increased ethanol use as a reason ...

    Flores street in Curitiba, south of Brazil

    In prosperity Finland Is 1st. US 9th, Brazil 41st, Zimbabwe Last

    In South America Brazil loses to Uruguay, Chile, Costa Rica and Argentina when the ...

    United Nations

    Despite Spotty Record on Human Rights Brazil Gets UN Seat

    Brazil, Chile and Argentina figure among the 15 members elected on Wednesday, May 21, ...

    4,300 Inmates to Get Literacy Instruction in Brazil

    The Literate Brazil (Brasil Alfabetizado) Program plans to impart literacy instruction this year to ...

    Brazil's Bolsa de Valores, Bovespa

    Brazilian Market Jumps Close to 5% While Dollar Rises Over 3%

    After another shaky day, the Bovespa, Brazil's stock exchange, going along with Wall Street, ...

    This Brazilian’s Passion for Flowers Bloomed into a Prosperous Business

    Flower grower Eulália Farrath manages a flower and ornamental plant production farm in the ...

    In Iracema, Brazil, You Don’t Live, You Get By

    Religion and politics to many are inseparable. I heard this often in Iracema, which ...