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YPFB, Brazil's Petrobras yet to agree on new gas price
Platts
RIO
Petroleumworld.com 11 24 06
Officials from the state-controlled oil companies of Brazil and Bolivia,
Petrobras and YPFB, met this week to negotiate prices for Bolivia's gas
exports to Brazil, but have not reached any new price agreements as yet, YPFB
said Thursday. In a written statement, YPFB said meetings in Santa Cruz,
Bolivia on Wednesday and Thursday showed "the companies are committed to
finding a solution that benefits both parties." YPFB said a new round of gas
price negotiations was scheduled for December 4-8.
Under an existing agreement, the companies have until December 10 to
settle gas prices, otherwise they could resort to international arbitration,
or agree to extend talks further. Brazil now pays around $4.20/MMBtu for
Bolivian gas, but Bolivia wants Petrobras to commit to paying up to
$7.00/Mmbtu. Argentina has already agreed to pay $5.00/Mmbtu for Bolivian gas.
Petrobras has been resisting paying higher prices for Bolivian gas,
especially since natural gas reference prices, such as Henry Hub gas in the
US, have fallen sharply in recent months. Brazil buys up to 30 million cubic
meters/day of gas from Bolivia, which is its main supplier.
Bolivia's government said earlier it was reducing gas shipments to Brazil
until December 3, due to a pipeline repair in southern Bolivia that has shut
in some fields. Bolivia's gas shipments to Brazil this week were around 20
million cubic meters/day, Petrobras Gas Director Ildo Sauer told local press.
Platts 23 11 06
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