SAO PAULO, March 17 (Reuters) - Bolivian President

Rodrigo Paz said on Tuesday that his country wanted to restart a

relationship with Brazilian state oil firm Petrobras

under new, clearer energy regulations.

Paz said his government was working to quickly update the

regulations to make them fair for Bolivia and foreign investors,

and that its proposed terms had been well received by both

Petrobras and the Brazilian government.

Petrobras halted investments in the country in 2006 after

then-President Evo Morales nationalized the sector. While there

were later negotiations and compensation payments doled out to

the oil firm, its operations in Bolivia remain suspended.

"In the case of Petrobras, its in our interest, not just to

have such a successful business in Bolivia, but we want to

restart a relationship as important as this one," Paz told

journalists in Sao Paulo at a business forum.

Paz's government is readying the overhauls of its oil and

gas law and mining law to lure back foreign capital to the South

American nation after output lagged over the past decade under

leftist oversight.

The oil and gas reform is meant to entince firms into

exploration through a more flexible tax and royalty system and

new contract models, Energy Minister Mauricio Medinaceli told

Reuters in January.

Petrobras CEO Magda Chambriard has offered her full support to

Bolivia, "both logistically and in terms of investment,"

Medinaceli said in a video message on Tuesday.

MINING PUSH

Bolivia holds vast reserves of lithium, key in the clean

energy transition, though they largely remain untapped due to

lack of certainty from investors.

Paz said that Bolivia wanted to ensure "clear rules, legal

security, investment stability and regulations for each of our

sectors," including mining for lithium, evaporites and other

resources.

"Brazil or any other nation can come to Bolivia," he added.