Rio, July 9, 2003 (Agência Brasil - ABr) - The Bolivian government received a proposal from Petrobras to reduce the cost of natural gas exported to Brazil, in order to make it possible for the product to enter the national market at more accessible prices and, thus, increase its participation in the Brazilian energy matrix.
This information was furnished to the Agência Brasil by the Petrobras director of Gas and Energy, Ildo Sauer, according to whom, the proposal to renegotiate the Brazil-Bolivia-Petrobras-YPFB (Bolivian Petroleum Fields) agreement foresees the payment of compensatory royalties to the Bolivian government, in the same amount the government would receive, if current prices were maintained.
In the proposal, the Brazilian company solicits a reduction in the price of Bolivian gas delivered to Petrobras and passed along to distributors, in order to make it possible for this gas to compete in Brazil with other energy sources and, thereby, penetrate the matrix of states served by gas from other suppliers.
Petrobras also wants to increase the flexibility of the agreement, reducing its obligation to withdraw fixed amounts of gas, in order to adjust withdrawals to the growth of the market. The final item in the proposal is for the effective withdrawal of all the gas stipulated in the initial agreement, but over a longer period of time.
In this sense, according to Sauer, Petrobras beckons, waving the possibility of extending the contract from 20 to 30 years. "With the reduction of prices and increased flexibility, the royalties that would eventually be paid to the Bolivian government would diminish. Thus, the proposal to consider the new volume of gas - which will probably be greater, since the price would be lower - using the old price only for the calculation of royalties."
The Bolivian government should present an initial assessment of the Petrobras proposal on August 11-12, when a Bolivian delegation will come to Brazil for the next stage of negotiations. The Petrobras director of Gas and Energy affirmed, however, that it will be "difficult" for an agreement to come out of this next meeting in August.
"The negotiation also involves other issues that are being conducted by the Ministries of Foreign Relations and Mines and Energy in a broader context of cooperation between the Brazilian government and the other Latin American countries, especially Bolivia." (DAS)
