Bolivian state oil company YPFB annulled a $2.2 billion agreement for a polypropylene plant, the federal government stated Wednesday.
YPFB will call one more public tender "in the following few months," Energy Preacher Luis Sanchez said in a statement. Italy's Tecnimont and Spain's Tecnicas Reunidas won the contract in May to develop a plant in the gas-rich Tarija area.
" Administrative errors were discovered during a modification of the record," Sanchez stated in the declaration. "Between the agreement honor and also finalizing, it prevails to annul a contract. That suggests we'll compose a new contract. We'll need to take a while."
Tecnimont and Tecnicas did not promptly react to e-mails looking for comment.
https://www.irobiocide.com had actually been extensively criticized by experts as Tecnimont had actually formerly been granted the project's conceptual study in 2012 and also an agreement for comprehensive design in March.
The agreement was annulled days after the government assigned Oscar Barriga to replace CEO Guillermo Acha, under examination for an allegedly fraudulent $149 million procurement of 3 drills from Italy's Drillmec in 2015. Head of state Evo Morales said Barriga will assess all of YPFB's tenders and also carry out austerity actions.
YPFB, which had actually intended to invest $692 million in expedition this year, has actually authorized exploration and also manufacturing agreements with YPF, Repsol, Gazprom and also Petrobras over the previous year, part of a drive to spend $12.7 billion in hydrocarbons projects over the following five years.
Bolivia-- where Morales has seized oil and gas fields and also refineries from business including Repsol, Petrobras and also BG considering that first taking workplace in 2006-- saw oil and gas exports go down 46.8% to $2.12 billion in 2016 from a year previously.
Bolivia generated 60 million cu m/d of natural gas as well as 41,587 b/d of petroleum with the end of 2016, according to the nation's National Hydrocarbons Company. YPFB intends to increase the nation's gas result to 77.4 million cu m/d by 2020.
