Sept. 19 (Bloomberg) -- Bolivian President Evo Morales said his government remains ``flexible'' as it negotiates with Petrolero Brasileiro SA on terms for taking over the company's refining and fuel operations in Bolivia.

A decree issued Sept. 12 that stripped Petrobras, Brazil's state-controlled oil company, of control over its refining assets was suspended specifically so their dispute could be resolved through talks, Morales said.

``We're in negotiations, and we're very flexible,'' Morales, 46, told reporters after meeting today with investors at the Council of the Americas, a pro-business group in New York. ``We're going to wait for technical, legal talks to play out business-to-business. After that, I'm sure there will be political decisions, too,'' he said.

Morales, an Aymara Indian activist and coca growers' advocate elected in December, faces mounting obstacles to carrying out a campaign pledge to take control of the nation's oil and gas resources. The government already suspended an order nationalizing oil and gas extraction on Aug. 11 when state oil company Yacimientos Petroliferos Fiscales Bolivianos disclosed it lacked at least $180 million needed to proceed.

A chief architect of the government's plan, former Energy Minister Andres Soliz, resigned last week, hours after Vice President Alvaro Garcia Linera froze the Sept. 12 decree, which would have stripped Petrobras of the right to export fuel from its two Bolivian refineries.

`Partners'

Soliz is the fourth top energy official to depart in two weeks. Morales also fired the head of YPFB on corruption charges and replaced his hydrocarbon superintendent twice since Aug. 28.

Deputy Treasury Minister Oscar Navarro, in Singapore for meetings of the International Monetary Fund, said yesterday that foreign energy companies had received new contracts for review, and could still meet the Nov. 1 deadline originally set for nationalization.

Petrobras, the biggest company in Bolivia, said last week that enforcement of the Sept. 12 decree would force it to pull out of the country after investing about $1.5 billion. Petrobras' two refineries produce all of Bolivia's gasoline and jet fuel, as well as 70 percent of its diesel oil.

``We want partners, not owners of our natural resources,'' Morales said today. ``The investor has to get his investment back, and has the right to profit from that. But only the state has the right to its property, as in any country in the world.''

Morales, who campaigned for president on the nationalization plan, saw his approval ratings drop in August to 61 percent, the lowest of his term, according a monthly poll by Lima-based firm Apoyo Opinion y Mercado.

-- With reporting by Jeb Blount. Editor: Strasser.

To contact the reporter on this story: Theresa Bradley in New York at tbradley7@bloomberg.net.

Last Updated: September 19, 2006 14:53 EDT