UPDATE 1-Bolivia expects $3.514 bln in energy investments http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-10-31T225250Z_01_N31247401_RTRIDST_0_ENERGY-BOLIVIA-INVESTMENTS-UPDATE-1.XML&rpc=66&type=qcna
Tue Oct 31, 2006
(Adds details, background, Petrobras and Total comments from earlier)
LA PAZ, Bolivia, Oct 31 (Reuters) - Bolivia has secured pledges of $3.514 billion in new investments in the energy sector in the next four years under contracts signed with foreign operators over the weekend, Energy Minister Carlos Villegas said on Tuesday.
Villegas told a news conference that under the new contracts over the next 30 years Bolivia's government will receive, on average, 70 percent of gross income from energy operations in the country.
He said private companies in the sector will receive 30 percent of revenue, on average.
Over the weekend eight companies, including energy majors Petrobras (PETR4.SA: Quote, Profile, Research) of Brazil, Repsol YPF (REP.MC: Quote, Profile, Research) of Spain and France's Total (TOTF.PA: Quote, Profile, Research), signed new contracts to bring them in line with a May 1 energy sector nationalization decreed by leftist President Evo Morales.
Petrobras has denied any commitment to future investment apart from routine maintenance spending for current operations.
France's Total also said on Tuesday it has not planned investment budgets.
"The long-term outlook for good business is what has allowed these high investment commitments," Villegas said.
He said the investments would be made between 2007 and 2010.
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