Brazil Returns to Bolivia Betting on Cheaper Natural Gas
Petrobras and Fluxus announce investments, and the industry negotiates the purchase of the local state-owned company
The visit of President Luiz Inácio Lula da Silva (PT) to Bolivia ended with promises of Brazilian investment in natural gas production and great optimism from the national industry about the possibility of buying the input at a cheaper price.
Petrobras and Fluxus, owned by the Batista brothers, announced investment plans in exploration and production in Bolivia after years without Brazilian capital input. On another front, major consumers began talks to negotiate direct supply from the local state-owned company.
Petrobras President, Magda Chambriard, stated that the company intends to drill an exploratory well in the San Telmo Norte area, in the state of Tarija, in 2025. The investment is estimated at US$ 40 million but still depends on an environmental license.
According to her, the fuel can help make the petrochemical and fertilizer industries in Brazil viable if production has competitive prices. "We are betting a lot on this synergy between Brazil, Bolivia, and also Argentina, countries interconnected by the gas pipeline," she said.
Bolivian gas was crucial for the development of the Brazilian market after the inauguration of Gasbol (Bolivia-Brazil Gas Pipeline) in 1999. However, the nationalization of oil assets by former President Evo Morales drove away investments and reduced local production.