Bolivian police raid energy firm YPFB in probe into oil contracts
LA PAZ: Bolivian prosecutors are investigating crude oil contracts held between state energy company YPFB and energy trader Trafigura, prosecutors said Friday, after authorities raided YPFB’s offices in the cities of La Paz and Santa Cruz earlier in the day.
Prosecutors told reporters that the probe centres around whether crude oil purchased from Trafigura was done so at inflated prices. It follows complaints from lawmakers about irregularities in the cost of buying oil when compared with previous administrations.
“The crimes under investigation are breach of duty, uneconomic conduct and contracts harmful to the state,” he told reporters outside YPFB offices in Santa Cruz,” Omar Quisbert, speaking to reporters outside the YPFB offices in Santa Cruz.
Landlocked Bolivia, which relies on fuel imports, is grappling with an ongoing economic and fuel crisis that has hurt consumers and farmers. Its centre-right government has pulled back on fuel subsidies to try to stabilize public finances.
In La Paz, prosecutor Aldo Mesa told reporters that the case concerns “the purchase of crude oil barrels at inflated prices, with reference to and comparison with the previous government.”
Trafigura, when asked about the investigation, said it has fully complied with its contractual obligations with YPFB.
“Regarding the supply of oil products to YPFB, Trafigura participates in contracting processes in compliance with the applicable regulation,” a spokesperson said. “Our tender proposals are structured in accordance with the tender rules ensuring competitive offers tailored to the specific conditions at the time of submission.”
YPFB said it was cooperating with the investigation, and had received requests from the public prosecutor’s anti-corruption commission to search its offices. It also said operations were continuing normally and “guaranteeing the country’s energy supply.”
FUEL QUALITY ISSUES INVOLVE TRAFIGURA AND VITOL The Bolivian government was already separately investigating contracts and oil purchases related to issues with low-quality fuel, and had said it would halt contracts with commodity trading firms Trafigura and Vitol while probing the matter.
However, YPFB interim president Sebastian Daroca, who was appointed this week, said on Friday that contracts with both firms run through June 30, and are needed for the country’s fuel supply. He said Bolivia adjusted its agreement with Vitol and had begun to “improve the quality conditions under which we receive the gasoline.”
Vitol did not immediately reply to a request for comment. Trafigura earlier on Friday reiterated its position that it has fulfilled requirements with Bolivia.
“Trafigura has always met its contractual obligations in full and has received no complaints or claims from YPFB relating to product quality or any other matter. The contracts remain in effect and have not been suspended,” it said in a statement.
It added that its contracts with YPFB do not involve the supply of gasoline.
Daroca also said YPFB would start bidding for new fuel shipments in coming days, so new contracts can be signed before June 30, potentially with new suppliers.
Daroca took the helm at YPFB after prior head Claudia Cronenbold resigned on Wednesday, less than a month after her appointment, stating the company required a long-term restructuring.