Brazil Tells Bolivia It Will Not Accept Any Gas Price Increase

The president of Petrobras, José Sérgio Gabrielli, says that Brazil will respect Bolivia’s decision to control refineries and increase taxes, but will not accept any price increases on the gas being exported to Brazil.

Gabrielli explained that the laws covering production, refining and distribution of oil and gas are the laws of Bolivia and must be obeyed.

However, he went on, Brazil’s contract for the export of Bolivian natural gas was drawn up as part of an international agreement under the jurisdiction of an arbitration court in New York.

Any changes in the export contract must be through mutual agreement, or, in the case of a disagreement, a ruling by the US court, declared Gabrielli.

"We have not been formally informed of any price changes. But we expect that to happen. If it does, our position, which is public knowledge, is against price increases.

"We are absolutely sure of ourselves on this, our position is definitely within the bounds of the contractual relationship established in 1996," said Gabrielli.

When Petrobras is officially informed that Bolivia wants a price increase on the natural gas that is exported to Brazil, the company will have 45 days to negotiate an agreement. If an agreement is not reached, then the case goes to the New York Arbitration Court.

Agência Brasil

Tags:

You May Also Like

Brazilian Vice-President Receives Moroccan Minister

Brazil’s Vice-President and Minister of Defense, José Alencar, received the Minister of Foreign Affairs ...

Brazil’s Varig Is Flying Daily to London Again

Varig is back in London with daily flights from Brazil. Varig, a Brazilian company ...

Brazil’s Attorney General Goes After Those Involved in Vote-Buying Scandal

Regarding the decision by Brazil’s Attorney-General of the Republic, Antônio Fernando de Souza, to ...

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 ...

Bulgaria and Brazil Talk Sports and Diplomacy

Brazil’s President Luiz Inácio Lula da Silva received the President of Bulgaria, Gueórgui Parvánov, ...

Recent Events in Brazil Are Not an Excuse for Torture

Amnesty International strongly condemns the reported rape of a female teacher held hostage during ...

Brazil and Cuba: Hugs, Deals and Tears

Brazilian President Lula’s assertion that he would not interfere in Cuba’s internal affairs has ...

Brazil Fund Starts Process to Become Open-End Investment Firm

The Brazil Fund, Inc. announced that its board of directors approved the conversion of ...

LATAM, US$ 15 Billion Chile-Brazil Airline Company, Is Almost a Reality

A top executive of the Chilean airline LAN told in a radio interview  that ...

Brazilian Farmers Want to Be Treated More Like Their American Counterpats

The SRB (Brazilian Rural Society) is going to promote a seminar in the first ...