Bolivian President Evo Morales assured President Luiz Inacio Lula da Silva of Brazil on Tuesday that Brazil will not run out of natural gas after Bolivia's nationalization of the gas industry, the Brazilian presidential press office said.

According to a statement issued by the office, the two presidents had a telephone conversation Tuesday afternoon and Morales promised to Lula that the issue of gas prices will be resolved through "bilateral negotiations."

Brazil, which recognizes that Bolivia's nationalization of its gas industry was an act of sovereignty, would take necessary steps to defend the interests of Petroleo Brasileiro SA, or Petrobras, the statement said.

Petrobras, Brazil's state-owned oil company, is one of Bolivia's biggest gas producers and one of the largest foreign investors in the Andean country.

The statement also said the two presidents will meet in the next few days for "in-depth discussions" on Bolivian-Brazilian relations and South American energy security issues.

Petrobras President Sergio Gabrielli said officials were seeking to secure the company's rights to Bolivian gas and the 1.6 billion U.S. dollars that Petrobras has invested in Bolivia since the mid-1990s.

On Monday, Morales signed a decree on nationalizing the country's oil and natural gas industries, giving foreign energy companies 180 days to renegotiate and sign new contracts giving control of the industry to the Bolivian state.

Bolivia has a reserve of about 48.8 trillion cubic feet of natural gas, the second largest deposit in South America, which is being exploited by some 20 foreign firms.

Source: Xinhua