Repsol says Bolivia deal guarantees profitability http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-10-29T170009Z_01_L29853802_RTRIDST_0_ENERGY-REPSOL-BOLIVIA.XML&rpc=66&type=qcna
Sun Oct 29, 2006
MADRID, Oct 29 (Reuters) - Spanish oil major Repsol YPF (REP.MC: Quote, Profile, Research) said on Sunday the deal signed under the Bolivian government's nationalisation of its gas fields guarantees the profitability of the company's investment in the country.
"Repsol YPF thinks the new contracts guarantee the profitability of its current investments in Bolivia as well as those that may be made in the future," the company said in a statement.
Repsol, along with other international oil companies such as Brazil's Petrobras (PETR4.SA: Quote, Profile, Research) (PBR.N: Quote, Profile, Research), France's Total (TOTF.PA: Quote, Profile, Research) and Britain's BG Group Plc (BG.L: Quote, Profile, Research), signed new contracts under Bolivia's nationalisation law adopted in May 2006 following the election of Evo Morales as the country's President.
Repsol said the deal provides a legal framework for current and new investments, a factor it regards as indispensable for the development of its activities in the country which are mostly in natural gas production.
The company has development rights over 32 blocks, seven of which are exploration blocks and the remainder in production.
The company said it has invested $1.167 billion in Bolivia between October 1997 and March 2006 and has paid $1.275 billion in direct taxes. Repsol shocked the market earlier this year when it slashed its proven reserves by 25 percent.
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