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Bolivia, Brazil talking gas price
Prensa Latina
LA PAZ
Petroleumworld.com 08 10 06
Great expectation surrounds the negotiations over raising the price of Bolivian natural gas supplies to Brazil from 3.8 to 7.5 per million BTU.President Evo Morales expects to settle the issue at a meeting with Brazilian counterpart Luiz Inacio Lula da Silva.
Morales mentioned nationalization of the domestic oil industry and the transfer to the state of local companies shares like those in power of Petrobras as key elements.
Bolivia rose gas sales to Brazil from 3.38 to five dollars per one million BTU, with possibilities of renegotiating next January.
Wednesday's round is the fourth and last, but the parties may either arrange future meetings or resort to international arbitration to adjust Bolivia's demand to current world tariffs.
Bolivian Oil Minister Andres Soliz rejected Petrobras' allegations that Brazil does not need Bolivian gas and said he was optimistic a new price could soon be agreed upon.
He recalled that Bolivia has markets like Mexico, Paraguay and Chile willing to pay current market prices.
Therefore, Bolivia would agree if Brazil wishes to limit investments in daily production of 30 million cubic meters of natural gas.
Minister Soliz added that oil nationalization also involves official interest in creating oil and gas reserves for future industrial expansion.
Prensa Latina 08 09 06
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