Bolivian President Evo Morales said on Tuesday he would negotiate with Brazil over two Brazil-built oil refineries in Bolivia and denied any conflict between the two countries, news reaching here said.

"From the moment we base ourselves in legality and respect for property, and by fulfilling agreements, there will never be problems. I am convinced of that," Morales told a press conference in the Palace of Government in the capital La Paz.

He defended his Sunday decision to nationalize the two refineries, which were built and have been operated by Brazil's energy giant Petrobras, but promised to continue to supply natural gas to the Brazilian cities of Sao Paulo and Cuiaba.

The refineries export crude and petroleum-based solvents, channeling 70 million U.S. dollars a year to Bolivia. The refineries were nationalized on paper in 2006, but the move was only implemented last week.

The nationalization triggered strong reactions from both Petrobras and the Brazilian government.

Petrobras has given Bolivia a deadline of Wednesday to respond to a purchase offer, threatening to take the matter to international arbitration and warned of a possible "negative impact" on bilateral aid.

Morales said Bolivian Energy Minister Carlos Villegas is set to respond to Petrobras' demand within the next few hours, adding that his government is based on a culture of dialogue in dealing with the case.

According to Brazilian government sources, Petrobras is seeking 140 million dollars for the two plants, while Bolivia is offering only 60 million dollars.

Source: Xinhua