Audits key to future Bolivian E&D contracts

Bolivian Hydrocarbon Minister Andre Soliz reported that audits of multinational oil companies operating in Bolivia will enable the country to establish new contracts with companies such as Repsol YPF SA, Petroleo Brasileiro SA (Petrobas), British Gas PLC, and Total SA.

July 31, 2006

Peter Howard Wertheim
OGJ Correspondent

RIO DE JANEIRO, July 31 -- Bolivian Hydrocarbon Minister Andre Soliz reported that audits of multinational oil companies operating in Bolivia will enable the country to establish new contracts with companies such as Repsol YPF SA, Petroleo Brasileiro SA (Petrobas), British Gas PLC, and Total SA.

Bolivian authorities said they would check international company investments in 56 oil areas.

Soliz said this measure is part of the hydrocarbons nationalization strategy announced May 1 by Bolivia President Evo Morales.

Morales has inaugurated the "Unity of monitoring and control" for company oversight by the hydrocarbon ministry, which is coordinating the work of private consultants hired for the evaluations. The Bolivian Hydrocarbon Ministry has a budget of $5.2 million, according to official sources.

The investigation results, to be ready in 60 days, will mark future rules for negotiation with international companies.