BUENOS AIRES (Dow Jones Newswires), Jan. 24, 2012
Bolivia's government on Tuesday revoked Pan American Energy LLC's 25% stake in the Caipipendi natural gas field, saying the company hadn't invested enough in the project.
Energy Minister Juan Jose Sosa said Spain's Repsol YPF SA, Britain's BG Group, and Pan American Energy had pledged to invest about $1.6 billion to develop the field.
"What has happened is that Pan American Energy wasn't contributing its share, and for that reason its contract is being rescinded," Sosa was quoted as saying at a press conference by government news agency ABI.
Sosa said that Pan American Energy's stake has been transferred to state oil and gas company Yacimientos Petrolíferos Fiscales Bolivianos.
YPFB, as the firm is known, will take into account the investments that Pan American Energy has made so far in the project with a view to negotiate a settlement, the minister said.
A Pan American Energy spokesman declined to comment.
Pan American Energy, which is 60% owned by BP PLC, is one of Argentina's largest oil and gas producers.
Copyright (c) 2012 Dow Jones & Company, Inc.
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