Brazil’s Lula Calls for Urgent Meeting to Discuss Bolivia’s Oil Nationalization

Brazilian President Luiz Inácio Lula da Silva has scheduled a meeting this Tuesday, May 2, to discuss the nationalization decree by the president of Bolivia, Evo Morales, which places control of that country’s oil and gas reserves in the hands of its own state-run company, Yacimientos Petroliferos Fiscales Bolivianos (YPFB).

Under the terms of the decree, foreign companies, such as Brazil’s Petrobras, have 180 days to comply with the new rules.

Petrobras has been operating in Bolivia since 1995. At the moment, it accounts for around 20% of total foreign investments in Bolivia and its tax revenues 18% of the country’s GDP.

Between 1997 and 2000, Petrobras built the Bolivia-Brazil gas pipeline, which can transport up to 30 million cubic meters of natural gas per day. The pipeline runs for over 3,100 kilometers, almost 2,600 in Brazil.

It begins in Santa Cruz de la Sierra, Bolivia, crosses parts of the states of Mato Grosso do Sul, São Paulo, Paraná, Santa Catarina and Rio Grande do Sul.

It passes through the cities of São Paulo, Curitiba and Porto Alegre. The area it serves is where over 70% of electricity consumption, 80% of industrial output and 75% of GDP is concentrated in Brazil.

The minister of Mines and Energy, Silas Rondeau, the president of Petrobras, José Sérgio Gabrielli and the acting minister of Foreign Relations, Samuel Pinheiro Guimarães, will attend the meeting with Lula.

Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published.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

Brazilian Road Equipment Maker Growing Exports 33% a Year

Brazilian road equipment maker Randon exported US$ 138.4 million in the first half of ...

What World Needs, Brazil Says, Is Joint Effort of Liquidity Management

Gathered in São Paulo, in southeastern Brazil, governors of central banks from several countries ...

The Brazilian Farce: Celebrating World’s Most Miserable 6th Largest Economy

Having gone through the year-end celebrations we were left with the feeling that 2011, ...

Slow Pace: Brazil Surplus Grows to US$ 10.5 Billion

Brazilian exports totaled last week US$ 3.534 billion while imports amounted to US$ 2.326 ...

At G20, Brazil, Russia and China Pressed to Stop Bribing Abroad

Dilma Rousseff, the president of Brazil, said that solutions to European and global economic ...

Under New CEO, Santander Gets Full Control of Santander Brasil

Spanish banking giant Santander under its new executive chairperson, Ana Botin, announced earlier this ...

Presidential candidate, Senator Heloísa Helena

Snubbed by Brazil’s Lula, This Woman May Force Him into a Runoff

A challenge from the left has shaken up Brazil’s presidential election, which the incumbent, ...

Brazil and Turkey Talk Trade and Middle East Peace

Luiz Inácio Lula da Silva, the president of Brazil and the Turkish prime minister, ...

Short story – The Alienist – Machado de Assis – In Portuguese

The Alienist — The Green House is a private jail, commented a doctor. Never ...

Lula’s US$ 856 Billion Growth Plan Will Start Only After He Leaves Office

From the total 1.59 trillion Brazilian reais (US$ 856 billion) forecasted for investment in ...