Nielmar de Oliveira
Reporter - Agência Brasil

Rio - The Brazilian and Bolivian government-run oil companies are examining seven possible partnerships. Petrobras' (Brazilian Petroleum, S.A.) director of Gas and Energy, Ildo Sauer, affirmed in an interview with the Agência Brasil that these projects are under study with the Yacimientos Petroliferos Fiscales Boliviano (YPFB).

Sauer informed that he spoke recently with Nestor Cerveró, director of the international division of the YPFB. The ongoing negotiations are geared to the signing a Memorandum of Understanding between the two companies at the end of this month or in the beginning of March.

According to the Petrobras director, the guidelines are expected to cover seven areas of cooperation and association between the two firms. "These understandings mean association in the refineries and in petroleum exploration and production and cooperation in the areas of biofuels, development of the natural gas market, conversion of vehicles from gasoline and diesel to natural gas engines, and even the propagation of natural gas use in Bolivian residences," Sauer affirmed.

The seven areas also include the possibility of technology transfer and qualification of human resources by the Petrobras Training Center. The goal is to train the managers and technicians needed to administer the Bolivian gas system and do research on the industrial complex that is expected to go up on the border between the two countries and which may eventually contain a fertilizer factory, a thermoelectric plant, and a natural gas/chemical pole.

According to Sauer the investments are expected to amount to around US$ 2.36 billion. Nevertheless, for these investments to materialize, the participation of private Brazilian and Bolivian investors will be necessary.

Translation: David Silberstein