Petrobras vs. Southern Venezuela
On Saturday, Petrobras gave the Bolivian government 45 days to negotiate the new contracts before going to international arbitration. 41 days remain.
Second, that beyond a crude earnings analysis, the current administration did not consider the effects of nationalization on other investment. Now, investment from Brazilian businesses will be conditional on the Petrobras case. This is bound to affect Bolivia, which has its biggest trading partner in Brazil.
And finally, Bolivia is extra-officially Southern Venezuela. A Petrobras team, including Petrobras president Gabrielli, went to Caracas to speak with the Venezuelan government and PDVSA about Bolivia's nationalization. Only after this meeting is over will they go to Bolivia. Wonder why....
In a related note, the Brazilian government has finally expressed their discontent with Chavez's actions. The government said that one cause for discomfort was that PDVSA guided Bolivia's nationalization.
Bolivia, Bolivien, Evo, Evo Morales, Petrobras, nationalization, gas, PDVSA, Brazil, Brazilien, Venezuela, Chavez, Hugo Chavez