Brazilian state-run energy company Petrobras is suspending future investment in Bolivia
Brazilian state-run energy company Petrobras is suspending future investment in Bolivia in order to take state control of its gas industry.
Its announcement came ahead of an emergency regional summit to discuss Bolivia's move to renationalise.
Bolivian President Evo Morales will meet his counterparts from Argentina, Brazil and Venezuela on Thursday.
The decision has cautioned consternation in Brazil and Argentina, whose energy firms have major stakes in the Bolivian gas sector.
Petrobras boss Jose Sergio said the Bolivian move, which reduces foreign firms' production stakes to 18%, meant there would no longer be sufficient returns to justify increased investment.
As a result, he said the company was now looking towards imports of liquefied natural gas (LNG) from other countries to feed growing domestic Brazilian demand.