• Categories
  • Archives

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:

  • 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Your email address will not be published.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

The Year We Were So Happy

Brazilians have been hit by a serious nostalgia affliction since the recent release of ...

Brazil Boom: Agribusiness and Machinery Give Paraní¡ State Best Year Ever

Sales by the industry of the southern Brazilian state of Paraná, from January to ...

Brazil: A Touch of Despair at the PT Court

Let’s begin with the diagnosis issued last week by President Lula, one of the ...

Brazilian Organic Farmer Show Their Goods at Germany’s Biofach

Brazil’s Água Boa (Good Water) project, developed by the Environmental Coordination at Itaipu Binacional, ...

Brazil: A Tale of Two Lulas

Brazil’s financial team has been reeling. And last week, President Lula took his team ...

Dictatorship-Era Law Regulating Journalists in Brazil to Be Challenged

Reporters Without Borders is to challenge a ruling by Brazil’s Superior Court of Justice ...

Brazil’s Petrobras in High Risk Deal in Argentina

Brazil’s Petrobras Energia is involved in a "high risk" natural gas exploration and production ...

Brazil: Bank Workers Strike and Protest in the Streets

Bank workers in Brasilia, capital of Brazil, met in a general assembly and voted to continue ...

MAN AG Buys Brazilian Volkswagen Truck and Bus for US$ 1.6 Billion

MAN AG, a German-based company, announced this Monday, December 15, the purchase of Volkswagen ...

Willy Herrmann

Willy Herrmann, the German Guy Who Became Brazil’s Mr. Formula Indy

What do the family of Brazil’s largest supermarket chain, a former Brazilian telenovela (soap ...