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TelecomClone
1 May 2006, 08:38 PM
This is breaking today, just recently it looks like.



http://news.ft.com/cms/s/07fd4248-d93d-11da-8b06-0000779e2340.html

]Bolivia orders military to control gas fields
LA PAZ, Bolivia, May 1 (Reuters)
Published: May 1 2006 19:08 | Last updated: May 1 2006 19:08

Evo MoralesBolivian President Evo Morales ordered on Monday that the military take immediate control of natural gas fields as part of the government?s nationalization of the hydrocarbons sector, which is dominated by foreign-owned companies.
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?We want to ask (the Armed Forces) that starting now, they occupy all the energy fields in Bolivia along with battalions of engineers,? Morales said.

The leftist leader signed a decree to nationalize the gas sector at the San Alberto field operated by Brazil?s state-owned energy company, Petrobras, located in the southeastern province of Tarija.

Bolivia?s vice president said the country?s state energy company, YPFB, and the military were occupying 53 energy installations throughout Bolivia.


http://news.bbc.co.uk/2/hi/americas/4963348.stm


Bolivia gas under state control
Bolivians celebrate the decree in La Paz
Bolivians celebrate after Mr Morales' announcement
Bolivia's President Evo Morales has signed a decree placing his country's energy industry under state control.

In a May Day speech, he said foreign energy firms must agree to channel all their sales through the Bolivian state, or else leave the country.

He set the firms a six-month deadline, but the military and state energy officials have already started taking control of the oil fields.

Bolivia has South America's second largest natural gas reserves.

But the country has suffered years of political crises over how to develop and profit from the industry.

The main foreign oil firms operating in Bolivia are Brazil's Petrobras, the Spanish-Argentine company Repsol YPF, British companies British Gas and British Petroleum and France's Total.

High energy prices

Speaking at an oilfield in the south of the country, Bolivia's left-wing president called it an "historic day".

"The pillage of our natural resources by foreign companies is over," he declared.


Evo Morales
The time has come, the awaited day, a historic day in which Bolivia retakes absolute control of our natural resources
Evo Morales
Bolivian President

He said the companies had six-months to re-negotiate their contracts and urged them to "respect the dignity of Bolivians".

Vice President Alvaro Garcia said the military and officials from the state energy firm YPFB moved to take control of 53 energy installations - including gas fields, pipelines and refineries - immediately after the decree was signed.

There was no immediate word from the foreign energy companies themselves.

The firms will get less favourable terms but current high global energy prices may be an incentive to see if they can work with Mr Morales, the BBC's Americas editor Simon Watts says.

Friendly meetings

Mr Morales swept to victory as Bolivia's first indigenous president in January elections after vowing to "recover" the country's natural resources by renationalising them.

However, he has shown signs of pragmatism since coming to office, and has held friendly meetings with several oil bosses.

On a visit to Brazil in January he said renationalising the industry would not mean expelling foreign companies or expropriating foreign property.

"Foreign companies have every right to recover investments and make profits, but profits should be balanced," he told a press conference at the time.

Petrobras is one of Bolivia's largest foreign investors, controlling 14% of the country's gas reserves.

Claverhouse
1 May 2006, 08:44 PM
Don't blame them, I'd do exactly the same.


Claverhouse :ph34r:

TelecomClone
1 May 2006, 08:47 PM
I doubt this will bode well for foreign investment.

Purple-Silver Fox
1 May 2006, 09:01 PM
Of course, balanced profits are beneath their dignity. After all, they own the world.

Nemesis
1 May 2006, 09:02 PM
If a country that I led was getting financially raped for its natural resources and cheap labor, I'd do that too.

ben from below
1 May 2006, 09:44 PM
Where is Francisco d'Anconia when you need him?

relaxo
4 May 2006, 02:32 PM
The funny thing is that the nations who have the most interests in Bolivia's natural gas are: Brazil (socialist president), Argentina, Spain (socialist gov't) and Venezuela (Chavez the commie). and they are all concerned about a socialist government doing what they themselves advocate.
hahaha, makes me laugh laugh laugh

Spartan26
8 May 2006, 02:54 AM
I don't think it'll be such an issue for foreign investors, especially as no nation is too dependent on Bolivia. Otherwise, it might be an excuse to go to war.

EDIT: I don't see it being any different than other markets throughout the world. I think prices will increase but I don't think it's a matter of closing themselves off to the world or that the world will find it less attractive to conduct trade.