Peter Howard Wertheim
RIO DE JANEIRO, May 30 -- State-owned Petróleos de Venezuela SA (PDVSA) and Yacimientos Fiscales Bolivianos (YPFB) have agreed to form a company called Petroandina to conduct joint exploration and production and oil marketing in Bolivia.
Petroandina will receive $1.5 billion from Venezuela, said Rafael Ramirez, Venezuela's energy minister.
Venezuela's President Hugo Chávez, Bolivia's President Evo Morales, and Cuba's Vice-President Carlos Lage witnessed the signing of the agreement in La Paz.
Jorge Alvarado, YPFB chief executive officer, said later this month Bolivia and Venezuela will launch further bilateral cooperation pacts.
Alvarado said a number of companies, including some from the US, have shown interest in investing in Bolivian oil and gas projects since the May 1 nationalization of the industry (OGJ Online, May 2, 2006).