Brazil currently imports 24 million cubic meters of gas from the neighboring country, around 50% of the national gas. Bolivia is heavily dependent on natural gas exports, and with Argentina self-sufficient in the natural gas supply, Brazil naturally appears as the main consumer market for gas Bolivian.
The nationalization decree of May 1, 2006, created a wave of crises between Brazil and Bolivia. Bolivia wants to change the regime of privatized companies and companies that have won concessions to exploit blocks such as Petrobras (it has a 35% stake in the country's two main gas fields, San Alberto and San Antonio).
The Bolivian government's idea is to transform companies into service providers for YPFB (Yacimientos Petrolíferos Fiscales Bolivianos). With an eventual break between Brazil and Bolivia, for the Bolivians it would remain only as options for large consumers Bolivian gas, Chile or the US, both possibilities appear to be economically and politically problematic for the parents.
A statement made recently by the Bolivian Hydrocarbons Minister, Carlos Villegas, saying that he will not submit to the wishes of the Petrobras, and that the deadline that expires at the end of October for multinationals to sign new contracts if they wish to remain in the country.
He stated that the measure was “temporarily suspended” to generate “conditions conducive to negotiation”, but not cancelled. This declaration further aggravates the crisis between the two countries.
It only remains to wait, to find out the end of the soap opera “O Gás Boliviano”!
by Eliene Percília
Team Brazil Escola.com
General geography - geography - Brazil School
Source: Brazil School - https://brasilescola.uol.com.br/geografia/gas-boliviano.htm
