Morales invites Petrobras to be a partner

13/01/2006 - 18h54

Mylena Fiori
Reporter Agência Brasil

Brasília – On Friday (January 13) during his visit to Brazil, the president elect of Bolivia, Evo Morales, said that he is going to invite state-run Petrobras of Brazil to be a partner in a new state-run Bolivian company.

Over the last decade, Petrobras has invested US$1.5 billion in Bolivia where it has become the second biggest foreign investor, after Spanish companies. Petrobras distributes 100% of the gasoline used in Bolivia, accounts for 24% of the government's tax revenue and 18% of the country's GDP.

A new law (Lei de Hidrocarbonetos) determines that Bolivia's natural gas and petroleum reserves (the second biggest in South America) belong to the state. A private company can exploit those reserves, but they remain the property of Bolivia.

At a press conference, Morales sought to assure investors that they would be protected. "I will permit private investors to have the right to recover their investments," he declared. "We need partners and Petrobras is welcome to be one of our partners. But we will deal harshly with any petroleum company that does not pay its taxes."

Morales takes office on January 22.

Translation: Allen Bennett