La Paz, Bolivia – The head of Bolivia’s state oil company has resigned following disagreements with the government of President Evo Morales over how to run the company.
Juan Carlos Ortiz, 38, took the helm of Yacimientos Petroleos Fiscales Bolivianos in August and played a key role in renegotiating contracts with foreign energy companies after Morales announced the oil industry’s nationalization.
At a news conference late Friday, Ortiz said he had sent his letter of resignation to Morales, a leftist who has pledged to increase the state’s role in the economy.
“I don’t have a doubt that in life all of us have a right to different visions,” Ortiz said. “I have my own vision … and what I’ve done is to defend it when I believe I’m right.” On Saturday, La Razon newspaper cited government sources saying that Ortiz was asked to resign during a meeting at the government palace with Vice President Alvaro Garcia. The government has not commented on the purpose of the meeting Friday.
Ortiz’ predecessor, Jorge Alvarado, resigned last year under allegations of corruption.
Ortiz, a former executive at Brazil’s state energy company Petrobras, was expected to help smooth relations with Brazil, Bolivia’s largest natural gas customer, over the nationalization decree.
Last week, Morales said Brazil should pay more for Bolivia’s natural gas.
“Bolivia can no longer continue subsidizing natural gas to Brazil,” Morales said during a summit of the Mercosur trade bloc.
Brazil buys some 918 million cubic feet of Bolivian natural gas per day, paying a little more than $4 per million British thermal units. Bolivia wants Brazil to pay about US$5.
Bolivia’s natural gas reserves are South America’s second largest after Venezuela’s.
