Global Processing

Bolivia: $240 million for Transredes

June 4, 2008
The Associated Press is reporting that Bolivia''s government says it will pay $240 million to Royal Dutch Shell and Ashmore Energy International for their shares in nationalized gas pipeline company Transredes.

Hydrocarbons Minister Carlos Villegas says the form of payment for the shares will be agreed upon in future negotiations.

Ashmore and Shell controlled about 50 percent of Transredes, with state energy company Yacimientos Petroliferos Fiscales Bolivianos, or YPFB, owning 37 percent.

Transredes'' pipelines transport natural gas to Brazil and Argentina.

President Evo Morales signed a decree recently obliging Shell and Ashmore to sell their shares to YPFB. He did not give the price.

Villegas said that exports to Brazil and Argentina won''t be affected.