MercoPress. South Atlantic News Agency

Bolivia, Shell reach agreement in nationalization

Bolivia has reached an agreement in principle to purchase the local operations of energy company Royal Dutch Shell PLC as part of President Evo Morales' nationalization push.

Financial terms have not been released. But Hydrocarbons Minister Carlos Villegas said the two sides signed a "friendly" agreement Friday. Shell's local representative, Jose Maria Linardi, said a final deal will be signed in two weeks. Morales nationalized Bolivia's energy industry in 2006, and negotiations have been going on ever since with various private companies. Shell and Ashmore Energy control a majority share in Transredes, which administers natural gas pipelines and transport in Bolivia. Ashmore has not reached a deal with the government.