ISSUES....
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Bolivians missing the boat

The first visit of Chilean energy minister Marcelo Tokman to Bolivia’s capital La Paz was unfortunate on many fronts, and will have repercussions on the energy industry across the Andean countries. It was unfortunate for both energy-starved Chile, which failed to gain access to its neighbor’s natural gas reserves, and Bolivia, which missed an opportunity to attract investment from prosperous Chile.
Tokman, meeting on July 31 with Bolivia’s hydrocarbons and energy minister, Carlos Villegas, hoped to gain access to his neighbor’s rich gas fields, which are the region’s second largest, after Venezuela. But Bolivia scuttled Chile’s hopes. Bolivia, the poorest nation in South America, says it doesn’t need help from one of the region’s most dynamic economies. The only trouble is that Bolivia actually does need help – and lots of it – to boost refining capacity and develop other areas such as sanitation, transport infrastructure, and agriculture. Bolivia is using its gas reserves as a bargaining chip with Chile, hoping its neighbor’s energy woes will grow so severe that it will break down and grant Bolivia sovereign access to the ocean in exchange for gas. Many Bolivians have long resented losing their coastline to Chile in the late 1800s. For years, mere talk of selling gas to Chile was political suicide in Bolivia, but Chile hoped Bolivian president Evo Morales had the political clout to make a deal.

By Randy Woods / Energy Tribune / Sep. 17, 2007

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Petroleumworld 09 18 07

 

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