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Petrobras will stop operating fuel distribution in Bolivia as of July 1st
Stéferson Faria/Petrobras
Petrobras' President Gabrielli and directorsPetroleumworld
CARACAS
Petroleumworld.com 06 21 06
Petrobras Bolivia will stop operating its fuel whole sale fuel distribuition to the Bolivian market as of July 1st, due to the new governmental provision that grants YPFB exclusiveness in Gasoline, and Diesel Fuel wholesale distribution, Petrobras announced on Wednesday. However, the company will guarantee normal fuel delivery to the gas stations up to June 30th.The decision made by Petrobras was a response to Bolivia's decree to nationalize the country's gas reserves, said the statement, which was released a day after Bolivian Minister of Planning Carlos Villegas said Petrobras was the only company that did not respect the country's hydrocarbon nationalization.
Through its Petrobras Bolívia Distribuición S.A. branch, the Company started distributing gasoline and Diesel in Bolivia in 2001, the year the government started the bidding process to transfer this task to the public sector.
Among the offers that were made, Petrobras acquired the rights for the Santa Cruz, La Paz, Cochabamba, Trinidad, Oruro, and Tarija blocks, in addition to the Northern Block.
The seven winners, among which Petrobras Bolívia, started operating on July 1st 2001, for a five-year period. In principle, it was foreseen that as of July 2006, fuel distribution to the gas stations would be liberated; however, the provision that grants Yacimientos Petrolíferos Fiscales Bolivianos this exclusiveness annulled the previous determination.According to news sources, YPFB will team up with the Venezuelan oil company PDVSA to distribute gasoline and other fuel products in Bolivia.
The relations between Petrobras and the Bolivian government have been tense since May 1, when the country decided to nationalize its fossil fuel resources.
Petrobras, which produces 60 percent of the natural gas that Bolivia exports to Brazil, has been hard hit by the decision.
Petroleumworld 21 06 06
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