Bolivia’s YPFB strikes transition deal with Petrobras to extend natural gas exports

Reuters reports:

FILE PHOTO: The logo of YPFB (Yacimientos Petroliferos fiscales Bolivianos) state oil company is seen on the building of its headquarters in La Paz, Bolivia, January 11, 2019. REUTERS/David Mercado

SAO PAULO (Reuters) – Bolivian state-owned oil firm YPFB said on Saturday it has reached a deal with Petroleo Brasileiro SA to extend natural gas exports through the Bolivia-Brazil Gas Pipeline commonly known as Gasbol.

The so-called transition deal comes after several meetings between the two companies in Brazil over the last month to negotiate the extension of a natural gas transport service contract signed in 1999 and due to expire on Dec 31, YPFB said in a statement.

Petrobras, as the company is known, did not immediately comment on the matter.

Under the terms of the transition agreement, which is valid from Jan. 1 to Mar. 10, Bolivia will continue to export up to 19.25 million cubic meters per day, as well as additional volumes to gradually meet the provision of 0.04 TCF (trillion cubic feet) that were paid by Petrobras, but not yet withdrawn. [Bolivian Thoughts opinion: Bolivia will have to deliver gas, that morales’ government already spent on their cheap propaganda, and we will not receive any money. This will also hamper the reconstruction of our democratic liberties that the delusional egomaniac squandered.]

“In the aforementioned transition period, Petrobras will not make new anticipated payments for volumes of natural gas and no fines will be generated against YPFB for deliveries below 19.25 MMmcd,” YPFB added. [Bolivian Thoughts opinion: This was only made possible because Bolsonaro is Brazil’s President, who strongly backs the interim Bolivian government, who has to call for new elections, as the one held back in October was corrupted by the coca grower caudillo.]

Brazil and Bolivia have locked horns for about a decade over their gas dealings. Brazil has sought ways to cut its dependence on purchases of Bolivian gas since Bolivian President Evo Morales seized Petrobras’ gas assets in May 2006.

Reporting by Marta Nogueira; Writing by Gabriela Mello; Editing by Chizu Nomiyama

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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