Bolivia energy minister quits after Brazil row

HAVANA, Sep 16 (Reuters) Just hours after Bolivian President Evo Morales said he trusted ''differences'' could be worked out with Brazil's Petrobras, riled by a move to seize its refinery revenue, Morales' energy minister resigned.

Bolivian Energy Minister Andres Soliz quit his post yesterday, a day after a resolution nationalizing the Petrobras refineries -- which he had signed -- was suspended due to protests by the Brazilian government.

Morales met briefly with Brazilian Foreign Minister Celso Amorim in Havana at a summit of the Non-Aligned Movement of developing nations.

Morales told reporters he believed Brazil's state energy company Petrobras would not pull out of Bolivia, despite Amorim's comment that this would be an option if the resolution were to take effect.

But Bolivia's first indigenous president also reasserted his country's right to manage its natural resources, which he said have been historically exploited with no benefit to the Bolivian people.

''We need partners, not bosses, not owners, be they Total, Repsol or Petrobras,'' Morales told a news conference.

Repsol YPF and Total SA are European oil giants with major holdings in Latin America.

The resolution signed earlier this week gave Bolivian state oil company YPFB control of exports and domestic sales of fuels like gasoline and diesel that are produced at the two Petrobras refineries. Petrobras says it is Bolivia's only refiner.

Soliz did not mention the resolution's suspension in his resignation letter, emphasizing instead the success of Bolivia's energy industry nationalization, decreed on May 1.

''The nationalization gave impetus to our people's process of regaining their dignity and self-esteem, which neoliberal and racist policies had acted to destroy,'' said the letter, a copy of which the ministry gave reporters in La Paz.

Bolivian energy analyst Humberto Vacaflor said the dispute with Brazil was likely to have sparked Soliz's resignation.

''Soliz has always talked about how to put an end to what he described as Brazilian imperialism, and he wanted to hit Petrobras hard, but it backfired,'' Vacaflor said.

PETROBRAS COULD LEAVE Amorim told reporters earlier in the day that it would be ''very negative'' if the measure affecting the refinery sales under Bolivia's resource nationalization went into effect.

''What will Brazil do? The best thing will be to look for alternative sources (of energy). That is not good for Bolivia,'' he said. ''If there is no other possibility, that's it.'' Amorim said Brazil was hoping for an amicable settlement and was not threatening Bolivia.

''But some things are natural ... Bolivia needs investments to continue exporting gas and continue explorations, because reserves are declining very rapidly,'' Amorim said.

If the measure is not revoked and Petrobras had to leave Bolivia, the company would seek compensation from Bolivia under the legal terms of its operating contracts, the minister said.

The refineries represent a tiny portion of Petrobras investments in Bolivia compared with natural gas. Brazil relies on Bolivia for half of its natural gas and imports about 26 million cubic meters of the fuel per day from its impoverished Andean neighbor.

Morales sustained yesterday that relations between Bolivia and Brazil were ''excellent.'' ''This is a nationalization without expropriation, without the expulsion of any transnational company. Investors have the right to recover their investment and get a fully guaranteed income,'' he said.

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