Brazil accepts Bolivian energy nationalization

[Judi Lynn]

Brazil accepts Bolivian energy nationalization
Thu May 11, 2006 1:26am ET

By Helen Popper

LA PAZ, Bolivia (Reuters) - Brazilian energy chiefs agreed on Wednesday to start thrashing out new contracts with Bolivian officials in their first meeting since President Evo Morales nationalized Bolivia's energy industry.

Brazil's state oil company Petrobras -- the biggest investor in Bolivian oil and gas -- has talked tough over the government's sweeping nationalization which hands control of gas fields to state oil company YPFB and raises taxes.

But following a five-hour meeting in a La Paz hotel, Brazilian energy officials and Petrobras chiefs formally accepted Bolivia's May 1 nationalization decree and pledged to hold further negotiations.

"The Brazilian energy minister and the Petrobras president reiterate their absolute respect for the sovereign decisions of the Bolivian government and Bolivian people" manifested in the nationalization decree, a joint statement said.
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http://today.reuters.com/news/newsArticle.aspx?type=worldNews&storyID=2006-05-11T052552Z_01_N11192867_RTRUKOC_0_US-ENERGY-BOLIVIA-BRAZIL.xml&archived=False

[Zynx]

1. As a shareowner in Petrobras, I'm glad to see this.

As a backer of the left in Latin America I'm even happier to see this.