Identifier
Created
Classification
Origin
06LAPAZ1491
2006-06-02 19:09:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:  

TRANSREDES SALE DECREASES U.S. INVESTMENT IN

Tags:  ECON EINV ENRG EPET BL 
pdf how-to read a cable
VZCZCXYZ0012
PP RUEHWEB

DE RUEHLP #1491 1531909
ZNR UUUUU ZZH
P 021909Z JUN 06
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 9424
INFO RUEHAC/AMEMBASSY ASUNCION 5891
RUEHBO/AMEMBASSY BOGOTA 3204
RUEHBR/AMEMBASSY BRASILIA 7053
RUEHBU/AMEMBASSY BUENOS AIRES 4303
RUEHCV/AMEMBASSY CARACAS 1600
RUEHPE/AMEMBASSY LIMA 1589
RUEHMN/AMEMBASSY MONTEVIDEO 3820
RUEHQT/AMEMBASSY QUITO 4234
RUEHSG/AMEMBASSY SANTIAGO 8776
RHEHNSC/NSC WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS LA PAZ 001491 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/AND
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW

E.O. 12958: N/A
TAGS: ECON EINV ENRG EPET BL
SUBJECT: TRANSREDES SALE DECREASES U.S. INVESTMENT IN
BOLIVIAN HYDROCARBONS

REF: A. LA PAZ 1157


B. LA PAZ 1107

UNCLAS LA PAZ 001491

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/AND
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW

E.O. 12958: N/A
TAGS: ECON EINV ENRG EPET BL
SUBJECT: TRANSREDES SALE DECREASES U.S. INVESTMENT IN
BOLIVIAN HYDROCARBONS

REF: A. LA PAZ 1157


B. LA PAZ 1107


1. (SBU) The U.S. firm Enron has completed the first stage of
selling its subsidiary Prisma, which owns 25 percent of
Bolivian gas pipeline operator Transredes and 29 percent of
the Bolivian gas pipeline operator GTB, to Ashmore Energy
International. According to Transredes contacts, Ashmore is
60 percent British and 40 percent American. Ashmore has
purchased 25 percent of Prisma, and is scheduled to purchase
the rest later this year. The sale will reduce U.S.
investments in Bolivia's recently semi-nationalized (ref A)
hydrocarbons sector by 30 percent, from USD 676 million to
USD 470 million, decreasing U.S. exposure in this conflictive
sector, which is dominated by Brazilian, Spanish, British,
and French investment.


2. (SBU) Transredes shareholders are negotiating directly
with the GOB regarding the GOB's plans to acquire ownership
control over the company and the terms of its new contract,
per the GOB's May 1 nationalization decree (ref A). The
negotiations are going well, say Transredes executives, and
Transredes will continue to negotiate as long as it is able
to maintain administrative control over the company's
operations. Operations have continued normally to date. The
GOB has not yet discussed compensation plans with Transredes
for the shares which it intends to take-over, but has
publicly stated that it does intend to provide some form of
compensation. Transredes executives told us that payment
through future natural gas sales, suggested by Hydrocarbons
Minister Soliz Rada, would not be an acceptable compensation
mechanism due to the uncertainty of future sales to Brazil
(ref B) and Argentina.
GREENLEE