Monday, June 26, 2006

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international gas price would be the case in Brazil.

Posted in World .

If that Bolivian Fiscal Oilfields (YPFB) and Petrobras are unable to agree within 45 days on the price of natural gas sold to Brazil, the matter shall be settled by an international referee but not by an international tribunal, said the Superintendent of Hydrocarbons Victor Hugo Saenz.

"This is not an international tribunal as the media report. We must clarify this. It will be one arbitrator who will consider the tenders of both parties and set an average price. Such a process would take no more than 15 days" he said.

Under the terms of the contract signed in 1996, sent the appropriate notification YPFB reliable Petrobras last week. The Brazilian company forwarded the reply requested to open negotiations on Wednesday. Reservoir proposed postponement for a few days.

"The negotiations will begin between 26 and 27 of this month," said the superintendent. In recent weeks, Petrobras executives rejected any increase in the price of natural gas outside the provisions of the contract. Statements

hard in this direction were heard in the media. "I believe that, somehow, the Brazilians are bitter about some allegations of smuggling and tax evasion was done in Bolivia. But they personally expressed their willingness to negotiate prices. This is business and there is no alternative but to negotiate, "he said.

Brazil is paying $ 3.50 a thousand cubic feet of natural gas. The Bolivian authorities felt that this price is very low compared to international prices . Hydrocarbons Minister Andres Soliz Rada said that rates should be between seven and nine dollars per thousand cubic feet. The Brazilians did not want to pay more than $ 4.4.

Saenz said that international prices vary according to seasons are different in the northern hemisphere and sur. Cuando hay invierno en Estados Unidos y Europa en el sur se vive el verano. "En las épocas frías en los países desarrollados el precio del gas llega incluso a 13 dólares el millar puestos en puerta de ciudad", dijo.

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