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Bolivian Indians threaten to cut natgas to Brazil
Published in Saudi Press Agency on 28 - 08 - 2006


Guarani Indians
threatened on Monday to take control of Bolivia's largest gas
and oil fields, interrupting exports to the gas-hungry Brazil
market, Reuters reported.
The Guaranies told local radio they plan to seize control
of the operations of Brazil's state energy firm Petrobras,
France's Total and Spain's Repsol YPF in the oil-and-gas-rich
Chaco region in eastern Bolivia.
"Today we are going to occupy production fields and we are
going to paralyze all oil (and gas) activities and suspend
exports to Brazil," Wilson Changaray, head of the Guarani
People's Assembly, told Fides radio.
Jorge Boland, trader manager of Transierra -- a Petrobras,
Total and Repsol YPF joint venture -- said supplies were normal
and played down the risk of disruption.
"It is possible (a disruption), but ever since they invaded
the control station on August 15, they've been saying this ...
but nothing has been disrupted," he told Reuters.
Earlier, Guarani Indians took over a control station on the
Transierra pipeline that transports 60 percent of the gas
Bolivia exports to Brazil, its top client. Brazil imports some
26 million cubic meters per day from Bolivia, which is about
half of what it consumes.
The Indians say Transierra has not fulfilled a promise to
invest $9 million in development projects in the area.
Boland said the new threat came after Transierra formally
refused to make a one-off payment of $9 million for development
projects in the area instead of constant regular payments over
20 years as agreed earlier.
"Under the deal we invest $450,000 a year in works ... we
do not agree to pay everything at once," Boland said, adding
that Transierra was trying to set a meeting with the Indians
for Tuesday or Wednesday. A meeting last week was canceled due
to security concerns as it was on the Guarani territory, he
said.
Changaray said the Indians have decided to step up protests
against Transierra because company directors failed to attend a
negotiation meeting last Friday.
They insist that Transierra has not fulfilled a promise to
invest $9 million in the region.
"We are not asking for an economic handout, but for
compensation for all the wealth that they extract from our land
and the damage they leave behind," said Changaray.
The threat is the latest drawback for Petrobras in Bolivia,
which supplies about half of Brazil's booming natural gas
consumption. Bolivia sits on the second-largest natural gas
reserves in South America after Venezuela.
The leftist government of President Evo Morales
nationalized Bolivia's energy sector on May 1, and has since
been seeking to raise prices on gas exports to Brazil by as
much as 75 percent.


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