Identifier
Created
Classification
Origin
07LAPAZ1280
2007-05-09 10:20:00
CONFIDENTIAL
Embassy La Paz
Cable title:
GOB TAKES OFF THE GLOVES WITH PETROBRAS
how-toVZCZCXYZ0016 PP RUEHWEB DE RUEHLP #1280 1291020 ZNY CCCCC ZZH P 091020Z MAY 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC PRIORITY 3516 INFO RUEHAC/AMEMBASSY ASUNCION 6757 RUEHBO/AMEMBASSY BOGOTA 4088 RUEHBR/AMEMBASSY BRASILIA 7982 RUEHBU/AMEMBASSY BUENOS AIRES 5225 RUEHCV/AMEMBASSY CARACAS 2464 RUEHPE/AMEMBASSY LIMA 2584 RUEHMD/AMEMBASSY MADRID 3455 RUEHMN/AMEMBASSY MONTEVIDEO 4589 RUEHQT/AMEMBASSY QUITO 5094 RUEHSG/AMEMBASSY SANTIAGO 9679 RUEATRS/DEPT OF TREASURY WASHINGTON DC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RUEHUB/USINT HAVANA 0305 RHMFISS/HQ USSOUTHCOM MIAMI FL RHEHNSC/NSC WASHINGTON DC
C O N F I D E N T I A L LA PAZ 001280
SIPDIS
SIPDIS
TREASURY FOR SGOOCH, ENERGY FOR CDAY, SLADISLAW
E.O. 12958: DECL: 03/30/2017
TAGS: ECON PGOV PREL BL
SUBJECT: GOB TAKES OFF THE GLOVES WITH PETROBRAS
Classified By: Ecopol Counselor Andrew Erickson for reasons 1.4 (b) and
(d).
C O N F I D E N T I A L LA PAZ 001280
SIPDIS
SIPDIS
TREASURY FOR SGOOCH, ENERGY FOR CDAY, SLADISLAW
E.O. 12958: DECL: 03/30/2017
TAGS: ECON PGOV PREL BL
SUBJECT: GOB TAKES OFF THE GLOVES WITH PETROBRAS
Classified By: Ecopol Counselor Andrew Erickson for reasons 1.4 (b) and
(d).
1. (U) On May 6, the GOB issued, and on May 7, officially
published, decree number 29122 giving state-owned oil company
YPFB majority control over residual crude oil exportation
from two refineries owned by Brazil's Petrobras, the largest
investor in Bolivia's hydrocarbons sector. Press reports
calculated that the GOB takeover of the refineries would
decrease Petrobras' earnings by USD $194,000 daily, turning
the refineries into losing businesses. Petrobras responded
to the decree by calling for fair negotiations for the sale
of the refineries to the Bolivian state. On May 7, Petrobras
sent YPFB and Hydrocarbons Minister, Carlos Villegas, its
final proposal for the transaction, and gave the GOB 48 hours
to respond. The GOB has previously offered to purchase the
two refineries from Petrobras for USD $60 million, but the
Brazilian company is seeking USD $160 million to $180
million. Brazilian Energy Secretary, Silas Rondeau,
threatened in a May 7 press conference to bring the case
before international arbitration if the GOB did not offer a
timely, reasonable price for the refineries.
2. (C) Arturo Castellanos, Petrobras representative in La
Paz, told Econoffs on May 7 that the decree was a means to
pressure Petrobras to sell its refineries. Brazilian press
reported on the Lula administration's disappointment with the
GOB for its "deceptive" decree, and insinuated that the
takeover could have a negative impact on the bilateral
relationship.
URS
SIPDIS
SIPDIS
TREASURY FOR SGOOCH, ENERGY FOR CDAY, SLADISLAW
E.O. 12958: DECL: 03/30/2017
TAGS: ECON PGOV PREL BL
SUBJECT: GOB TAKES OFF THE GLOVES WITH PETROBRAS
Classified By: Ecopol Counselor Andrew Erickson for reasons 1.4 (b) and
(d).
1. (U) On May 6, the GOB issued, and on May 7, officially
published, decree number 29122 giving state-owned oil company
YPFB majority control over residual crude oil exportation
from two refineries owned by Brazil's Petrobras, the largest
investor in Bolivia's hydrocarbons sector. Press reports
calculated that the GOB takeover of the refineries would
decrease Petrobras' earnings by USD $194,000 daily, turning
the refineries into losing businesses. Petrobras responded
to the decree by calling for fair negotiations for the sale
of the refineries to the Bolivian state. On May 7, Petrobras
sent YPFB and Hydrocarbons Minister, Carlos Villegas, its
final proposal for the transaction, and gave the GOB 48 hours
to respond. The GOB has previously offered to purchase the
two refineries from Petrobras for USD $60 million, but the
Brazilian company is seeking USD $160 million to $180
million. Brazilian Energy Secretary, Silas Rondeau,
threatened in a May 7 press conference to bring the case
before international arbitration if the GOB did not offer a
timely, reasonable price for the refineries.
2. (C) Arturo Castellanos, Petrobras representative in La
Paz, told Econoffs on May 7 that the decree was a means to
pressure Petrobras to sell its refineries. Brazilian press
reported on the Lula administration's disappointment with the
GOB for its "deceptive" decree, and insinuated that the
takeover could have a negative impact on the bilateral
relationship.
URS