Bolivia and Brazil to Begin NatGas Export Talks after June 29

Bolivia and Brazil are due to begin talks over the price and volume of the former's natural gas exports to Brazil after June 29, Bolivian state news service ABI quoted Bolivia's President Evo Morales as saying.

Bolivia and Argentina are scheduled to sign a final agreement over a price increase for Bolivian natural gas exported to Argentina on June 29, Morales said, without disclosing a figure.

The negotiations will be based on undisclosed criteria agreed to by Morales and his Brazilian counterpart Luiz Inacio Lula da Silva during a summit in Vienna last month.

Brazil's federal energy company Petrobras (NYSE: PBR) currently pays US$1.70/MBTU for transport and some US$3.80/MBTU for the gas.

Local press has reported Bolivia wants to raise the price of gas exports to Brazil to some US$5.5/MBTU.

Bolivia exports some 26 million cubic meters of natural gas a day to Brazil, over half of the country's demand for the fuel.

Petrobras' gas purchase agreement with Bolivia expires in 2019 but has clauses that allow price and volume revisions apart from regular price increases based on the currency and the international oil price basket.

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