The Spanish government said on Thursday that it will not resort to confrontation with Bolivia to resolve their dispute over the latter's decision to nationalize its fuel industry.

Permanent confrontation has not been the right formula in the past, said Fernando Moraleda, the country's Communication Minister.

Spain's main concern is about the involvement of Spainish-Argentine energy firm Repsol YPF, which has a heavy investment in Bolivia.

Spanish Foreign Minister Bernardino Leon will lead a team of Spanish officials to Bolivia to discuss the issue.

Bolivian President Evo Morales unveiled the plan to nationalize the country's natural gas sector on Monday, ordering all foreign companies to accept new operation contracts within 180 days or quit the country.

Under the plan, Bolivia's state-owned oil company, Yacimientos Petroliferos Fiscales Bolivianos (YPFB), will control all natural gas fields in Bolivia and pay foreign companies for their services.

About 20 foreign firms are exploring Bolivia's gas reserves, including Repsol-YPF, Brazil's government-run Petrobras, Britain's BG Group PLC and France's Total.

Repsol and Petrobras are the two biggest foreign investors inBolivia's energy sector.

Morales, who took office in January as Bolivia's first Indian president, has repeatedly said his country's natural resources must be nationalized so that Bolivians could benefit from the profits that were sent overseas.

Source: Xinhua