Bolivian court overturns US$61 million ruling against Petrobras subsidiary

RIO DE JANEIRO, BRAZIL – The Agro-environmental Court of the Bolivian city of Sucre has overturned a lower court ruling that sentenced Petrobras Bolivia (PEB), a subsidiary of Brazil’s state-owned oil company, to pay US$61 million in damages for the use of the property where the San Alberto field facilities are located, the oil company said Thursday.

According to a statement from Petrobras, the court ruling indicated evidence of the violation of PEB’s fundamental rights and constitutional guarantees in the lower court ruling, overturning all acts since the beginning of proceedings.

The decision also extinguished previously imposed cautionary measures and imposed a fine on the lower court judge, the company added.

“(The decision highlighted) absence of demonstration of ownership of the area by the plaintiff,” Petrobras said. “The Agro-environmental Court’s ruling reinforces the company’s confidence in Bolivia’s institutions.”

Read also: Petrobras’ Bolivian subsidiary has accounts blocked amid land dispute – sources

The oil company had communicated the initial ruling last May 28. At the time, sources said that PEB’s accounts were blocked by Bolivian courts amid a legal dispute with a family over ownership of part of the area where the San Alberto field is located.

PEB operates the asset with a 35% stake, in partnership with YPFB and Total E&P.