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.

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.