Bolivia acquires Shell's stake in pipeline company

LA PAZ, Sept 17 (Reuters) - Bolivia's state-run energy firm YPFB will pay Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) some $120 million for its 25 percent stake in natural gas pipeline company Transredes, which the government nationalized in June, state news agency ABI said on Wednesday.

Leftist President Evo Morales nationalized Transredes, the largest pipeline company in Bolivia, after failing to reach an agreement with Ashmore Energy International (ASHM.L: Quote, Profile, Research, Stock Buzz) and Royal Dutch Shell, which each have 25 percent of the company.

The agreement with Shell gives YPFB control of a 72 percent stake in Transredes, which from now on will be called YPFB Transport, ABI said, quoting Energy Minister Saul Avalos.

Ashmore has not agreed to transfer its 25 percent stake to the Bolivian government and instead filed for international arbitration at a Swedish court, ABI reported Avalos as saying.

http://www.reuters.com/article/rbssEnergyNews/idUSN1729741220080917

portraying this action of the Morales Government like Morales seizing Shell assets