Car bomb explodes near Bolivia office of Petrobras

LA PAZ, Bolivia - A car bomb exploded outside the Bolivian headquarters of Brazilian oil company Petrobras on Friday as a fierce debate over new taxes on natural gas and oil production escalated, the government said.

Nobody was hurt in the explosion, which damaged the car of a Petrobras official at midday in the wealthy city of Santa Cruz, Interior Minister Saul Lara said.

"The Suzuki vehicle had dynamite in it and it belonged to a Petrobras employee," he said.

A group calling itself "Patriotic Bloc" claimed responsibility and warned there would be further, more precise attacks. The group sent a recorded message to Bolivian television stations demanding full state control over natural gas reserves.

The attack comes three days after President Carlos Mesa vetoed a controversial energy bill that would slap new taxes on foreign oil companies.

Indigenous and labour groups, who demand a 50-per cent royalty or nationalisation of the country's natural riches, plan a protest march on Monday.

"It's a strange coincidence that (the attack) happened on the eve of protests scheduled for Monday," Lara said.

Twelve major foreign oil firms do business in Bolivia, including Britain's BP and Spain's Repsol-YPF.

- REUTERS