Bolivian gov't suspends 14 contracts signed with foreign oil firms

The Bolivian government suspended 14 oil contracts signed between state-run oil company YPFB and foreign oil firms, saying that the foreign sides violated state rules of presentation and legalization for their businesses, according to news reaching Lima on Wednesday.

Ruth Villarroel, government notary in the La Paz prefecture, told Bolivian media that "their presentation did not meet our norms, but the state oil company has already coordinated with us to clear up these errors."

Out of 44 contracts registered in October 2006, 30 has been processed in accordance with agreed protocols and proven to meet all the formal requirements, while 14 others have failed and would be suspended, she said.

However, no contracted oil projects could formally start operation before being finalized by Manuel Morales, the new president of the YPFB, who was appointed on Monday and designated to sign the formal agreements.

The Bolivian government strives for resumption of state control over the country's energy industry. It ordered all foreign oil and gas companies operating in Bolivia to renew their contracts by October 2006 in a bid to secure the state's absolute ownership of all oil and gas assets in the country. Forty-four contracts were renewed before the deadline and were submitted to corresponding governmental administration departments for approval in January this year.

Source: Xinhua