Bolivia says Petrobras may return to oil and gas production, help restructure YPFB

Bolivia is set to launch technical talks with Petrobras to revive energy investment and production, with the company also offering to help restructure state energy firm YPFB.

Bolivia will launch technical talks next week with ​Brazil's state-run oil firm Petrobras on its possible return ​to exploration and production in the country, while ‌the ​company is also willing to help restructure state energy firm YPFB, Energy Minister Marcelo Blanco said on Thursday.

The government of President Rodrigo Paz is looking to reopen Bolivia to ‌energy investment and revive trade with key partners such as Brazil after years of declining gas output helped drain hard-currency reserves and turn a former energy exporter into a country hit by recurring fuel shortages. "The goal is for them to produce ‌again, to operate here in Bolivia, to explore, and to have a strategic partnership," Blanco told reporters, adding that Petrobras ‌was open to supporting YPFB's restructuring with its past crisis-management experience.

Blanco said the two sides agreed after a meeting on Wednesday to set up technical working groups starting next week to evaluate Petrobras' renewed participation across the sector. He did not provide investment figures or a timeline.

"I am not going ⁠to ​give figures. I will not ⁠be irresponsible. I never give amounts or exact dates," Blanco said, adding that Bolivia was also seeking to work with other investors interested in the country. YPFB ⁠President Sebastian Daroca also said a firm was expected to submit its final report next week on Bolivia's oil and gas reserves ​through the end of last year.

He said the government planned to use the figures to discuss how it ⁠could boost output in coming years. The report is being closely watched by analysts and industry groups because Bolivia has faced longstanding criticism over delays in ⁠publishing ​updated reserve data, leaving uncertainty over the size of the country's remaining oil and gas resources.

Petrobras halted investments in Bolivia after former President Evo Morales nationalized the sector in 2006. Still, the Brazilian company has not been completely absent ⁠from Bolivian gas business, as it has been authorized to import Bolivian natural gas into Brazil through border entry points between ⁠the two countries. In March, Paz ⁠said Bolivia wanted to restart its relationship with Petrobras under new and clearer energy regulations designed to lure foreign capital back to the country after more than a decade of declining ‌gas output.