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Ashmore to buy out Shell stakes in energy businesses in Brazil and Bolivia
Petroleumworld Bolivia
LA PAZ
Petroleumworld.com 05 30 07
Houston-based energy company Ashmore Energy International (AEI) , Tuesday said it has agreed to buy out Royal Dutch Shell stakes in energy businesses in Brazil and Bolivia, including part of the Bolivia-Brazil natural gas pipeline, Market Watch reported.
" These assets are strategically located and are critical for the energy supply of the region, and the acquisition will further strengthen our platform to grow in South America," Joao Carlos Albuquerque, AEI's vice president responsible for Brazil and Bolivia, said in a statement.
Financial terms of the Shell deal weren't disclosed, and the transaction requires regulatory approval and consent, AEI said.
AEI already owns stakes in each of the projects from its May 2006 purchase of the Latin American assets of bankrupt U.S. energy company Enron Corp. (ENE).
AEI will increase its stake in both the Bolivian and Brazilian sections of the Bolivia-Brazil natural gas pipeline, which has capacity to transport 30 million cubic meters of natural gas a day.
AEI will increase its stake in the Bolivian unit, GasTransboliviano SA to 34% from 17%, and will raise its stake in the Brazilian unit, Transportadora Brasileira Gasoduto Bolivia-Brasil SA, to 8% from 4%, according to the statement.
AEI also will buy 25% of Bolivia's largest natural gas transport company, Transredes Transporte de Hidrocarburos SA, increasing its overall stake to 50%.
In 2006, the Bolivian government took over the other 50% of Transredes, which had been in the hands of Bolivian pension funds. As part of its drive to nationalize the hydrocarbons industry, the government has said it wants to own at least 50% plus one share of Transredes.
AEI also will buy Shell's 50% stake in the Cuiaba Integrated Project in Brazil, increasing its stake to 100%. The project includes a 480-megawatt thermoelectric power plant in Cuiaba, Mato Grosso state, and an accompanying natural gas pipeline transporting Bolivian gas to Cuiaba.
Petroleumworld 29 05 07
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