Bolivia to Buy Out Refineries From Brazil's Petrobras

Bolivia's president Evo Morales announced that Bolivia reached a deal to purchase the country's only two oil refineries from Petrobras, closing the latest chapter in a year of often-delicate energy dealings between the South American neighbours.

Bolivia will pay US$112 million to buy back the formerly state-owned facilities, which together provide some 90 per cent of Bolivia's domestic fuel needs, Morales said Thursday.

Speaking to oil workers and union members packed into the presidential palace for the evening announcement, Morales downplayed the tensions that had accumulated during the negotiations.

Bolivia had initially offered only US$60 million (euro44 million) for the refineries, while Petrobras had started as high as US$200 million (euro150 million), Morales said.