Senate approves hydrocarbons bill with modifications

Bolivia's senate voted on Tuesday to approve a draft version of the government's proposed hydrocarbons bill that would increase taxes and royalties on hydrocarbons production to up to 50%, the ABI government news service reported. A detailed discussion of the 142 articles that make up the proposed bill began on the morning of April 27 and is due to wrap up by Friday, the president of the country's congress, Hormando Vaca Díez, said in the statement. The bill, with any modifications made by the senate, will be sent to the lower house on May 3. If the lower house is in agreement with the modifications, the senate will give the bill its final approval, a hydrocarbons ministry spokesperson told BNamericas. The senate's modifications are basically related to the bill's form rather than the content of the articles, the spokesperson said. If the modifications are rejected by the lower house then both the senate and lower house would have to meet to resolve any discrepancies. The bill would add a 32% tax on top of 18% royalties for all hydrocarbons production in the country. Foreign oil companies with existing exploration and production contracts are also concerned they may be required to accept new contract conditions under the new law, but no decisions have been made in this regard, the spokesperson said. Earlier this month, Bolivia's President Carlos Mesa submitted to congress the 76 exploration and production contracts signed with companies since 1997 to be either ratified or rejected. None of the contracts have been signed by congress, as the country's constitution requires.