Peter Howard Wertheim
OGJ Correspondent
RIO DE JANEIRO, May 12 -- Bolivian President Evo Morales said oil companies, including Brazil's state-owned Petroleo Brasileiro (Petrobras) and Spain's Repsol YPF SA, won't be compensated after nationalization of their oil and gas reserves.
"There is no reason to indemnify them," Morales told reporters at a news conference in Vienna before a meeting of European Union and Latin American leaders. "What we are looking for are partners, not bosses that exploit our oil resources. We are not chasing out anyone. But they cannot have ownership."
Bolivia took control May 1 of the country's oil and gas fields and gave foreign energy companies operating in the country 180 days to agree to new contracts with the government (OGJ Online, May 2, 2006).
Morales also said Petrobras "operated with illegal and unconstitutional contracts," evaded taxes, and with other foreign companies engaged in contraband of petroleum. Bolivia's president told the Brazilian print and video media that about 70 contracts signed with oil companies in the past were illegal because they were not approved by the congress.
Andrés Soliz Rada, Bolivia's hydrocarbons minister, said Venezuelan President Hugo Chávez is "fully cooperating with Bolivia's government to reduce Bolivia's dependence on Petrobras."
The minister cited Chávez commitment to build a petrochemical complex in Villamontes, an asphalt plant in Cochabamba, and a gas liquefaction plant in Rio Grande. Chávez also promised to install service stations in Bolivia to compete with Petrobras stations.
Soliz called expansion of Petroleos de Venezuela in Bolivia "a path with no return." He said 200 workers will be sent to Venezuela for training in exploration and production. In addition, Bolivia soon will import 200,000 bbl of diesel from Venezuela at low prices because of Chávez's friendship with the new Bolivian government.
