Bolivia Pledges to Finish Contract Renegotiations by November 1

Bolivia's government will sign new operating contracts with all foreign oil companies by November 1, government news agency ABI reported, citing development planning minister Carlos Villegas Quiroga.

The government has completed the contract model for foreign oil companies' hydrocarbons operations, and now only President Evo Morales' approval is needed on the renegotiation timeline.

The new hydrocarbons law establishes the possibility of association, joint production and operation contracts. "The optimal would be to establish only one [type of] contract because the oil companies in the country have already discovered and explored fields," Villegas said.

Villegas also guaranteed that all of the companies would renegotiate their contacts as opposed to pulling out of Bolivia.

The companies originally had a 180-day deadline from Morales' May 1 nationalization decree to renegotiate contracts in order to give the state a majority stake of production, but the deadline lapsed.

The nationalization of hydrocarbons resources will provide the state with monthly revenues from production of US$30mn, a hydrocarbons ministry spokesperson told BNamericas.

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