Brazil’s Petrobras Threatened with Ousting from Bolivia

    Brazilian Petrobras in Bolivia

    Brazilian Petrobras in Bolivia Bolivia's leftist government warned energy companies including Brazil's Petrobras that they must commit to hefty investments before August 20 or risk being thrown out of the natural-gas rich country. The warning by Energy Minister Carlos Villegas came three days after President Evo Morales made a similar threat.

    "We hope that by August 20 we'll have results, agreements, otherwise we're going to enforce the legal provisions (in the contracts)," Villegas told a news conference, referring to the new operating contracts signed by energy companies to comply with Morales' nationalization of the industry.

    In an effort to reap more profits from impoverished Bolivia's energy resources, Morales nationalized the country's natural gas industry last year.

    Officials have said the contracts signed in October 2006 commit the foreign companies to invest some US$ 3.5 billion to increase production.

    Villegas said Spain's Repsol , US Vintage, Chaco – which is controlled by Anglo-US firm Panamerican Energy – and Argentina's Pluspetrol have presented investment plans worth a total US$ 1 billion.

    However, the largest investors in Bolivian energy – Brazil's Petrobras, Repsol-YPF's local subsidiary Andina and France's Total – have yet to present their plans to the government.

    Villegas said the requirement to invest in projects to meet local demand before investing in potentially more profitable projects to increase exports was one of the main reasons that companies were reluctant to submit their investment plans.

    Meanwhile, he said the second US$ 56 million payment for a total of US$ 112 million to buy two refineries from Petrobras had been made. Petrobras acquired the refineries in 1994 for US$ 104 million and made millions of investments.

    During a time in the negotiations Bolivia had offered to pay US$ 60 million while Petrobras was demanding at least US$ 200 million. At that time Brazil threatened to go to an international court to solve the dispute.

    Mercopress

    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    Your email address will not be published.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

    Russia Adds Two Brazilian States to Its Safe-Beef List

    While dozens of countries continue to ban Brazilian beef due to foot and mouth ...

    Underground Brazil

    The big cities keep getting bigger. To survive, millions have been operating a prosperous ...

    zzz

    Brazil: Cargo at Amazonas’ Manaus International Airport Grows 13%

    The Teca (Terminal de Carga Aérea – Air Cargo Terminal) at Manaus Eduardo Gomes ...

    Brazil in New Dehli Readying the G-20 Troops

    The Brazilian Minister of Foreign Relations, Celso Amorim, arrives today in New Delhi, India, ...

    zzz

    FIFA Denies it Had Threatened to Take World Cup Away from Brazil

    Dilma Rousseff, the president of Brazil, had a “positive meeting” with FIFA general secretary ...

    Farm in the Brazilian Amazon

    Fearing Foreign Invasion Brazil Tightens Rules for Alien Land Buyers

    Worldwide prosperity in recent years has led to a boom – and speculation – ...

    Brazil’s Petrobras Dreaming Of Deals with Japan and South Korea

    The President of Petrobras – Petróleo Brasileiro S.A., José Eduardo Dutra, wants to attract ...

    Brazil: We’ve Got Our Geniuses Too

    There have been many a "genius" from other continents and countries other than from ...

    Brazilian Petrobras

    Over 30% of Brazilian Petrobras’s Pre-salt Wells Are Dry, Says Newspaper

    Brazil's state-controlled oil and gas multinational Petrobras announced this Tuesday, July 28, in an ...