Bolivia's Oil Contract Scrutiny: Trafigura Under Investigation

Bolivian prosecutors have launched an investigation into crude oil contracts between the state energy company YPFB and energy trader Trafigura, examining whether these deals involved inflated pricing. Offices of YPFB in La Paz and Santa Cruz were raided as part of this probe, with an emphasis on irregularities that lawmakers have flagged compared to previous administrations.

The investigation focuses on potential breach of duty and uneconomic conduct, causing harm to the state. As Bolivia tackles a worsening fuel and economic crisis, the government has reduced fuel subsidies aiming to stabilize public accounts. Prosecutor Aldo Mesa highlighted the discrepancies in crude oil pricing under scrutiny, indicating that Trafigura has adhered to all contractual obligations.

In response, Trafigura noted its compliance with regulations and maintained that its proposals follow competitive tender rules. Meanwhile, YPFB remains operational and cooperative with anti-corruption officials. Contracts with traders, including ongoing agreements amidst fuel quality concerns with Trafigura and Vitol, are deemed crucial as Bolivia reassesses its fuel supply strategy.

(With inputs from agencies.)