Bolivia / Transrede pipeline repurchase all the shares of Ashmore

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The Government of Bolivia announced Friday to have reached an agreement with the British company Ashmore to acquire 100% of the shares that it holds in the pipeline Transrede, the operation aimed to "consolidate" the process of nationalization sector started on 1 May 2006. The company Transrede is one of the major companies delivering gas to Brazil.

The Bolivian government had decided last June by decree to nationalize all the shares of Shell and Ashmore in the company TR-Holdings, which owns 50% of the shares of Transporte de Hidrocarburos Sociedad Anonima (Transrede). As a reaction, these companies had assigned the State of Bolivia to justice before a Swiss court.

The total value of the transaction under which 25% owned by Ashmore will be transferred to the state company YPFB (Yacimientos Petroliferos Fiscales Bolivianos) has not been disclosed. According to local media, the investment group Ashmore requested $ 500 million in exchange for its shares in Transrede. ( Finance Information City )

Element of comparison: last month, Bolivia had paid to the Dutch company Royal Dutch Shell $ 120 million for the 25% that it had also Transrede.

"Our YPFB is running, a state turns on," said Bolivian Vice President Alvaro Garcia in announcing the agreement.

The agreement with the British group is a "further step" towards the completion of the nationalization of hydrocarbons, flagship project of Bolivian President Evo Morales.

With this approach, "Bolivians are owners of gas, oil, liquids, means of transport and refineries," said the vice-president.

The takeover of Transrede addition to a process of nationalization of all hydrocarbon industry, which earned income countries in this sector have increased by $ 300 million in 2005 to 1 930 million this year.

In 1996, the privatization of the Bolivian National Yacimientos Petroliferos Fiscales Bolivianos (YPFB) had favored large companies for oil and gas. It passed largely in the hands of the consortium Shell / Enron. which also controls nearly 74% of companies involved in oil-gas sector (including transportation company hydrocarbon Transrede, managing the pipeline).

Causing the dismissal of employees hydrocarbons sector, privatization led to riots. The government of Sanchez de Losada was then appealed to the military to protect oil refineries and natural gas facilities.

Fraud and corruption surrounding the contract negotiations with Bolivia: Enron reportedly paid 2.5 million dollars in bribes to officials from YPFB to complete the privatization contract.