Bolivia and Brazil at Impasse Over Gas. Brazilians Brace for Higher Prices.

It is expected that the price of natural gas in Brazil will be more expensive soon following the decision by the government of Bolivia to increase the price again of the gas it exports.

The president of Petrobras, Sérgio Gabrielli, declared that the announced price increase will have an important impact in Brazil, but that Petrobras, which has large investments in Bolivia, is willing to negotiate a solution.

Gabrielli reports that at the moment negotiations with the state-run Bolivian oil company YPF (Yacimientos Petroliferos Fiscales) have come to a standstill, but that Petrobras wants talks to resume as soon as possible.

Gabrielli explained that the talks are slow because they involve a detailed analysis of contracts and technical discussions.

The president of Bolivia, Evo Morales, will be in Brazil this week at a meeting of the Interamerican Development Bank in Belo Horizonte. It is expected that the issue of Bolivian gas exports to Brazil will be discussed with him.

Meanwhile, Gabrielli explains that as Bolivian gas supplies slightly more than half the demand in Brazil at the moment, any problems in Bolivia will have an immediate impact. "A crisis in Bolivia means an important impact on the gas supply in Brazil.

Petrobras is very active in Bolivia where it has invested US$ 1.5 billion over the last decade. In 2005 Petrobras operations in Bolivia were worth US$ 600 million.

Petrobras controls 45% of that country’s gas fields and owns its two biggest refineries. It also pays some 30% of Bolivia’s total tax revenues. On the other hand, Brazil imports two thirds of Bolivia’s gas exports.

Petrobras has contracts with YPF for natural gas that stretch until 2019. The contracts have clauses permitting price adjustments. Since September 2005, there have been three price adjustments of 13% , 10% and 14%.

Agência Brasil

Tags:

  • Show Comments (2)

  • Guest

    That is what is called…..
    Brazilian fairness.

  • Guest

    Just as I said a few times…
    …in the previous articles above :

    Brazil never wants to pay the fair price, even to their friends the poorest.
    But obviously they complain all the time how the price of their exports are too low ! Right ?

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Lula Became Hostage of the Rich, Says Brazilian Bishop

Brazilian Bishop Dom Luiz Flávio Cappio received recently the Kant World Citizen Award from ...

Experts Afraid Flu Might Wipe Out Tribe of Uncontacted Amazon Indians

Highly vulnerable uncontacted Indians who recently emerged in the Brazil-Peru border region have said ...

Polls Show Brazil’s Lula Has no Chance of Being Reelected in Sí£o Paulo

If Paulistas (residents from São Paulo, Brazil’s most populous and wealthy state) could decide ...

In Brazil, Abduche Is Synonym with Fine Decoration Fabric

The Syrian Abduche family arrived in Brazil at the beginning of the last century ...

Brazil’s Lula in Davos Urges End to Farm Subsidies

Before a multinational audience composed of entrepreneurs and heads of state attending the World ...

Occupations and Looting Mark 10th Anniversary of Brazil’s Landless Massacre

Brazil’s Landless Movement, MST, marked this week the tenth anniversary of the deaths of ...

India’s President Starts in Brazil Trade and Political Tour

The President of India, Pratibha Patil, left her country on Saturday for a Latin ...

Children as Young as 5 Work in Brazil’s Talc Mines

Child labor continues to pervade supply chains throughout the Brazilian economy. This observation was ...

Brazil’s Perdigí£o Has Record 139% Hike in Profit in 2004

Brazil’s Perdigão S.A., one of the largest food companies in Latin America and one ...

Killing and Torture by Police Still Widespread in Brazil

In its latest periodic review of Brazil, international organization Human Rights Watch, whose mission ...