Bolivia will compensate Brazilian government-run energy firm Petrobras for partial expropriation of two oil refineries under the government's nationalization program, said reports from La Paz, capital of Bolivia, on Wednesday.

The announcement was made by Bolivia's state-owned oil firm Yacimientos Petroliferos Fiscales Bolivianos (YPFB).

It was the clearest statement by the Bolivian authorities on compensation related to the refineries which were among the foreign-owned firms the government has seized control as part of the Bolivian nationalization program.

YPFB President Jorge Alvarado said it preferred to use products like natural gas to compensate Petrobras.

The move came after Bolivian President Evo Morales signed a decree to nationalize the country's energy industry last week.

The Bolivian government has named its representatives, including two military officers, for the boards of newly nationalized foreign energy companies.

Morales gave the foreign companies 180 days to negotiate and sign new contracts, insisting that Bolivia's state energy company own the bulk of the new joint ventures' shares.

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

Source: Xinhua