|
|
BRAZIL-BOLIVIA: Morales Breaches Lula/Petrobras Fortress
By Mario Osava
RIO DE JANEIRO, Feb 15 (IPS) - Flaunting protocol in his determination to
improve the price of the natural gas that his country exports to Brazil,
Bolivian President Evo Morales achieved his goal. He persevered, extending
his state visit to Brazil until Thursday, and as an extra bonus obtained
assistance for development projects as well.
The agreements signed by the two South American countries will represent
additional revenues of around 144 million dollars a year for Bolivia, said
Bolivian Energy Minister Carlos Villegas. That would amount to 11 percent
more than the 1.26 billion dollars that Brazil paid for natural gas
imports from Bolivia last year.
Approximately 100 million dollars of that will be brought in by means of a
complex formula by which Brazil will pay separately for the ethane and
butane (cooking gas) that form part of the natural gas that Bolivia
exports to Brazil.
Under the contract in effect between the two countries from 1999 to 2019,
Brazil's state-owned oil company Petrobrás purchases up to 30 million
cubic metres a day of natural gas. Last year, the average was 26 million
cubic metres a day.
The additional payments will vary, because they depend on the proportion
of ethane and butane in the natural gas imported by Brazil, and on future
international prices in an unstable market, explained Brazilian Energy
Minister Silas Rondeau and the president of Petrobrás, José Sergio
Gabrielli.
The new formula forms part of a protocol to the existing contract.
The key aspect of the new arrangement is that "the contract will remain
intact," said Rondeau and Gabrielli. One of their concerns was to ward off
criticism that the administration of centre-left President Luiz Inácio
Lula da Silva has made too many concessions to neighbouring countries,
especially to countries governed by the left, like Bolivia and Venezuela,
at the expense of national interests.
The other 44 million additional dollars a year that Bolivia will be taking
in, according to Villegas, will come from the increase in the price of
natural gas that Bolivia exports to Brazil, from 1.19 to 4.20 dollars per
million BTU for up to 2.2 million cubic metres a day of gas that go to a
thermoelectric plant in Cuiabá, capital of the west-central Brazilian
state of Mato Grosso.
That is a separate contract, because the plant is owned by foreign private
capital, but the Brazilian government decided to push the accord through.
The additional cost will be paid by the state-owned utility Furnas, which
purchases the electricity generated by the plant.
The price of 1.19 dollars "was unfair," admitted Brazilian Foreign
Minister Celso Amorim. The price rise will go into effect on Apr. 15.
But without a doubt the most difficult negotiations involved the contract
between Petrobrás and Bolivia's state-owned energy company Yacimientos
Petrolíferos Fiscales Bolivianos (YPFB).
The Morales administration was hoping for the price to go up from the
current 4.30 dollars per million BTU to 5.00 dollars. But Petrobrás made
it clear that it would not accept modifications to the contract, which
only foresees price adjustments every three months, based on the price of
a basket of petroleum by-products.
Under the formula that was finally hashed out, Petrobrás will pay the
going market price for the ethane and butane contained in the natural gas
it imports from Bolivia. The price swings of these products - and the
fact that the arrangement "does not break the contract," as Rondeau
stated - apparently led Brazil to agree to the new payment system.
The negotiations stretched into the night on Wednesday, and Morales's
visit was thus extended from eight to 18 hours, ending in the early
afternoon on Thursday.
Brazil's foreign minister remarked that it is unusual for a state visit to
turn into a negotiating meeting. Negotiations generally take place prior
to a visit, and the presidents meet to sign the previously established
accords.
As a result, Morales did not make it to his scheduled visit to Congress,
leaving the presidents of the Senate and the Chamber of Deputies waiting
and triggering protests from several lawmakers at what they called a "lack
of respect" for the legislature of a neighbouring country.
Also contributing to the chaos was heavy rainfall which led to a six-hour
delay in the arrival of part of the Bolivian delegation, including five
ministers.
After the agreements were reached, Lula said they were beneficial to both
countries, and were the result of "a lot of dialogue, much patience and
above all great intelligence," and that they consolidated "a strategic
alliance."
Brazil, he said, "is not imperialistic as many say, nor hegemonic as some
would like." As the most industrialised country in South America, "it does
not have to dispute its place with any sister country," but should offer
them "solidarity and generous assistance for their development," he added.
With respect to Bolivia, Lula acknowledged "the justice of its demands,"
and announced his government's interest in promoting the installation of a
petrochemical complex on the border between the two countries and a
biodiesel plant in Bolivian territory with Brazilian technological
support, and in sharing his country's experience in the field of
agricultural research.
He thus indicated the start of a new phase in bilateral relations,
characterised by heavy Brazilian investment in Bolivia. He also reported
that his government would donate one million vaccines against
foot-and-mouth disease and would send another lot in March, to combat
outbreaks of the disease that have appeared in Bolivia in recent weeks.
Morales said he persisted in the negotiations because he was searching for
"solutions for the poverty suffered by Bolivians." He gave his assurances
that his government would "live up to all of the contracts" and said he
was returning to his country "happy and content" as a result of what his
visit achieved.
(END/2007)
|
|
|
|
|
| |
|
|
|
|
|
|
What is RSS?
