[NYTr] Bolivia's Morales replaces head of state oil firm

[nytr at olm.blythe-systems.com]

Reuters via Yahoo - Aug 28, 2006
http://news.yahoo.com/s/nm/20060828/wl_nm/energy_bolivia_dc_2


Bolivia's Morales replaces head of state oil firm

LA PAZ, Bolivia (Reuters) - President Evo Morales on Monday replaced the
head of Bolivia's state oil company YPFB, who had faced accusations of
corruption months after he was appointed to the post.

The Bolivian leader named Juan Carlos Ortiz, a top YPFB official, to take
over from Jorge Alvarado. Ortiz previously worked for foreign energy
companies including Brazil's Petrobras, the biggest investor in Bolivia's
gas and oil industry, analysts said.

The corruption scandal has tarnished the nationalization drive by Morales,
who took office pledging to spread the country's natural gas riches among
the impoverished majority and stamp out graft.

Last week, Energy Minister Andres Soliz accused Alvarado of fraud over a
barter deal to exchange crude oil for diesel with Brazilian company
Iberoamerica at a price well under the market value.

Along with Soliz, Alvarado was one of the most public faces of the
nationalization of the energy sector announced by Morales on May 1.

Alvarado, a geologist and former deputy for Morales' MAS party, was
appointed to the helm of YPFB soon after the government took office in
Januay and charged with putting the dilapidated energy company at the heart
of the sector.

Bolivia has the second-largest natural gas reserves in South America after
Venezuela.

Copyright © 2006 Reuters Limited. All rights reserved.

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AP via Yahoo - Aug 28, 2006
http://news.yahoo.com/s/ap/20060828/ap_on_re_la_am_ca/bolivia_oil_4

Head of Bolivian state oil company quits [under pressure]

By DAN KEANE
Associated Press Writer

LA PAZ, Bolivia - The president of Bolivia's state oil company resigned on
Monday following accusations he violated the government's oil nationalization 
decree.

Jorge Alvarado was one of the key figures in President Evo Morales' drive
to nationalize the South American nation's hydrocarbons industry.

Morales and Hydrocarbons Minister Andres Soliz announced the resignation at
a joint news conference in La Paz on Monday afternoon.

The Bolivian government last week acknowledged that Alvarado, who answers
directly to Soliz, had violated the terms of nationalization decree by
having the state oil company Yacimientos Petroleos Fiscales Bolivianos
contract to export crude oil through an independent Brazilian firm.

Opposition members of the Bolivian Senate voted last Wednesday to
investigate Alvarado.

Morales said Monday that Alvarado had committed "no act of corruption, nor
harm to the state" and alleged there was a "conspiracy" to slow down
Bolivia's nationalization process.

Former YPFB Vice President Juan Carlos Ortiz has been tapped to fill
Alavarado's position.

According to Morales' May 1 nationalization decree, the state-run company
known as YPFB is required to assume control of every stage of the
production process. Foreign companies were given six months to cede
operational control to YPFB or leave the country.

Earlier this month Bolivia announced that the "full effect" of
nationalization would be suspended while YPFB underwent a complete
reorganization and sought $180 million in emergency financing.

Copyright © 2006 The Associated Press. All rights reserved.