Bolivia Tells Brazil to Get Out of the Oil Distribution Business by July 1st

Brazil’s Oil Company Petrobras Bolivian affiliate will cease to distribute fuel and refined products in Bolivia as of next July 1st in accordance with the May nationalization decree from Bolivian President Evo Morales government.

The announcement was confirmed Thursday by Bolivia’s government owned oil corporation YPFB CEO Jorge Alvarado, who said the company was prepared to take over operations.

"I can guarantee that at this moment YPFB is prepared to assume full control of all wholesale distribution plus the import of diesel fuel," said Alvarado.

"Obviously Petrobras will cease to be a wholesale distributor under the current system, since YPFB is taking over operations as well as those of the other seven wholesale fuel distributors in Bolivia," added Alvarado.

Petrobras Bolivian wholesale distributor is one of seven main suppliers of gasoline stations in Bolivia, as well as to the country’s three main cities, La Paz, Santa Cruz de la Sierra and Cochabamba.

However private oil companies allege YPFB does not have, yet, the financial resources or the managerial skill and staff for such an undertaking.

According to Evo Morales’ nationalization decree all oil and gas corporations must transfer all their wholesale operations to the government’s YPFB.

In the nineties following the massive privatization of hydrocarbons exploration and exploitation, YPFB lost its leading role and became a mere auditor of the private oil industry.

With the recent re-nationalization YPFB must take control of the five main corporations in the country, and all related operations such as production, transport, refining, storage, distribution, marketing and industrialization of hydrocarbons.

"It’s not only Petrobras, all wholesale distributors will disappear next July 1st. All the fuel wholesale market will be operated by YPFB", underlined Alvarado.

As to the rest of negotiations regarding Petrobras assets such as the two refineries and contracts with the Bolivian government, Alvarado said no agreement has been reached but "we still have ahead four months to keep negotiating".

Mercopress – www.mercopress.com

Tags:

You May Also Like

Brazil Uses G8 Summit as Showcase for Its Biofuel Programs

Brazilian President Luiz Inácio Lula da Silva was invited to participating in the G8 ...

For Lula, Quest of New Markets Made Brazil Less Dependent on the US

Conquering new markets, which constitutes the core of the Brazilian government's foreign trade policy, ...

Brazil’s Furniture Industry Revises 2008 Growth Projection from 5% to 2.5%

Companies from Brazil that took part in the Index, the leading trade fair for ...

FTAA: Brazil’s Poison Pill – Final Part

The successful policy against AIDS implemented in Brazil will be put in jeopardy if ...

Brazil’s Embraer Sells Less Planes, But Still Makes Record US$ 3.8 Bi

Brazilian aircraft manufacturer Embraer released on Friday, March 31, their balance for 2005. Considering ...

Brazilian Arrested in US Faces 5 Years in Jail for Selling Pornography

Brazilian Danilo Simões Croce, 42, of São Paulo, was arrested in Orlando, Florida. yesterday, ...

Indians Under the Gun in Brazil

Potiguara Indian leaders went to Brasília after being threatened and attacked by the owners ...

On the color of the President’s private parts

Is there a Brazilian fixation with saco (scrotum)? The use of the less than ...

This Brazilian Has a Knack to Find Art Inside Trash and Then Export It

The Helvécia community in Brazil is essentially black. But the group from the district ...

Brazil: Time for Lula to Stop Moaning

Instead of constantly sniping at the US, Brazilian President Lula should adopt a more ...