Identifier
Created
Classification
Origin
06LAPAZ3177
2006-11-27 21:55:00
CONFIDENTIAL
Embassy La Paz
Cable title:
EXXON MOBIL SELLS BOLIVIAN ASSETS
how-toVZCZCXYZ0002 PP RUEHWEB DE RUEHLP #3177 3312155 ZNY CCCCC ZZH P 272155Z NOV 06 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC PRIORITY 1417 INFO RUEHAC/AMEMBASSY ASUNCION 6326 RUEHBO/AMEMBASSY BOGOTA 3650 RUEHBR/AMEMBASSY BRASILIA 7513 RUEHBU/AMEMBASSY BUENOS AIRES 4770 RUEHCV/AMEMBASSY CARACAS 2022 RUEHPE/AMEMBASSY LIMA 2090 RUEHLO/AMEMBASSY LONDON 0098 RUEHMD/AMEMBASSY MADRID 3194 RUEHME/AMEMBASSY MEXICO 1918 RUEHMN/AMEMBASSY MONTEVIDEO 4220 RUEHFR/AMEMBASSY PARIS 0103 RUEHQT/AMEMBASSY QUITO 4659 RUEHSG/AMEMBASSY SANTIAGO 9244 RUEHRI/AMCONSUL RIO DE JANEIRO 0894 RUEHSO/AMCONSUL SAO PAULO 2057 RHEHNSC/NSC WASHINGTON DC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC
C O N F I D E N T I A L LA PAZ 003177
SIPDIS
SIPDIS
STATE FOR WHA/AND
TREASURY FOR SGOOCH
ENERGY FOR CDAY AND SLADISLAW
E.O. 12958: DECL: 11/27/2016
TAGS: ECON EINV ENRG EPET BL
SUBJECT: EXXON MOBIL SELLS BOLIVIAN ASSETS
REF: LA PAZ 2943
Classified By: Ecopol Counselor Andrew Erickson for reason 1.4 (e).
(C) Exxon Mobil's Vice President of the Americas William
Drennan told the Ambassador on November 27 that Exxon sold
its Bolivian assets -- an approximately USD 100 million
investment in the Itau natural gas field jointly owned with
the French company Total -- to Total prior to the GOB's
contract migration deadline of October 28 (reftel).
According to Drennan, Exxon sold its assets because of the
lack of contract sanctity and reliable judicial recourse in
Bolivia. Drennan said that Exxon did not want to give up
ownership and marketing rights of its production as required
by the new contracts, nor "slide down the slippery slope" of
contract renegotiations, setting a bad example for its
worldwide operations. The sale will reduce U.S. investments
in Bolivia's recently semi-nationalized (reftel) hydrocarbons
sector by 21 percent, from USD 481 million to USD 381
million, decreasing U.S. exposure in this conflictive sector,
which is dominated by Brazilian, Spanish, British, and French
investment.
GOLDBERG