Petrobras decided that it will not invest any more money in the project to expand Bolivian gas production, informed the director of the company’s International Area, Nestor Cerveró.
The project would add 15 million cubic meters to the current daily production level of 40 million cubic meters.
According to Cerveró, the decree signed by Bolivian president Evo Morales at the beginning of the month, nationalizing his country’s petroleum reserves and the assets of the petroleum companies that operate in Bolivia, puts new investments out of the question.
"Raising royalty fees from the 50% they used to charge to 82% makes investments unfeasible, not only in Bolivia but anywhere in the world."
He said that the joint commissions established to conduct the negotiations between Petrobras and the Bolivian government will basically discuss three main points: the nationalization of reserves and assets, the price of gas exported to Brazil, and the increase in the rate of royalty fees.
Cerveró pointed out that Bolivia currently produces a daily maximum of 40 million cubic meters and that, of this total, "we will stand pat at the 30 million cubic meters we currently import, as stipulated in the contract we signed with them."
He went on to say: "Any addition to this volume would imply new production, new investments, and new pipelines – and we have cancelled all of that."