Bolivia to nationalize natural gas sector on Monday

[Robbien]

LA PAZ, Bolivia, May 1 (Reuters) - Bolivian President Evo Morales will sign a decree on Monday to nationalize the hydrocarbons sector as he has vowed to do since taking office in January, the government said.

Bolivia has the second-largest natural gas reserves in South America after Venezuela, and the question of how the country should manage these riches has been at the heart of several popular revolts in the last three years.

. . .

Top investors in Bolivia's gas sector include Brazil's state-owned Petrobras (PETR4.SA: Quote, Profile, Research) (PBR.N: Quote, Profile, Research), Spain's Repsol YPF (REP.MC: Quote, Profile, Research), UK gas and oil producer BG Group Plc (BG.L: Quote, Profile, Research) and France's Total (TOTF.PA: Quote, Profile, Research).

A government official told a crowd gathered in La Paz's main plaza that Morales would sign the decree at around noon (1600 GMT) in the San Alberto field, which is operated by Petrobras and located in Bolivia's southeast. Last year, Bolivia's Congress passed a hydrocarbons law that added a 32 percent tax on production to an already-existing 18 percent royalty. Bolivia has natural gas reserves of some 48.7 trillion cubic feet.

http://today.reuters.com/business/newsArticle.aspx?type=naturalResources&storyID=nN0196868

[Dora]

1. Woo-hoo! All natural resources belong to the public commons.

As it SHOULD BE HERE. I have faith that day will come.

[Vidar]

8. I agree with you, but lack your faith. Viva Morales!

[station agent]

2. So Evo Morales will be

Hugoized any minute now...

[Robbien]

3. It is too early to tell

Morales is being pressurized to do this by his people. Now its a waiting game to see whether or not Morales uses the money for the people of Bolivia.

[Acadia Blue]

4. I wish it was the same way here....no oil welfare kings getting

subsidies from the middle and working class taxpayers, and incentives to find alternative fuels.

[Freddie Stubbs]

5. Will it work out as well as the 'land redistribution' in Zimbabwe did?

:shrug:

[Robbien]

6. That is the risk.

Is Morales committed to Bolivia or will he fall to the forces of greed.

Zimbabwe chose the wrong path. Hopefully Bolivia fares better.

[Igel]

13. Mugabe chose the wrong path in order to secure his

power base. Zimbabwe didn't.

Although for sure the Shona aren't doing the most complaining, they're at the top of the pile of dog dung.

The problem is that 'natural resources' tends to be a slippery idea. Today it's natural gas, tomorrow it could be the right bestowed upon the elected officials for people operate businesses, the next day it could be the brains a scientist was born with.

[ButterflyBlood]

45. There's a difference

Mugabe seize a bunch of land from Zimbabwe citizens for himself and his cronies. Evo is seizing land from greedy foreign exploiters for his people.

[Freddie Stubbs]

47. Without the "greedy foreign exploiters"

Evo would have no idea that there was natural gas there in the first place.

[DoYouEverWonder]

7. Big Oil is going to be pissed

I bet they even make Condi send back that coca leaf guitar Morales gave her.

[daleo]

9. Will the CIA spot Bin Laden in Bolivia now?

Or perhaps they will suddenly discover that Morales is working on nuclear weapons.

[Bigmack]

10. Gas and oil are TRUE...

National security issues. What could be more national security oriented than the life blood of the country? The oil companies have shown that they can't be trusted to have our national survival in mind. We should sell them our oil at a reasonable price, they can send it to refineries at an established markup. The refinery does the same. Away we go. Not cheap gas, but at least we know how bad we're being fucked.

[Judi Lynn]

11. DU'ers may find the article BrotherBuzz has posted in another thread

concerning the big U.S. base placed close to Bolivia, in Paraguay, to be a real eye-opener. Most Americans have probably never heard what's going on there, or that "there" even exists:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2257818&mesg_id=2257834

[Robbien]

14. Still absorbing the report

on the existance of the base.

On the issue of these natural gas fields, that report states "Under pressure from the United States and the IMF, Bolivia sold off its oil and gas to Enron and Shell in 1995 for $263.5 million, less than 1% of what the deposits are worth."

In their minds Latin American people only exist as resources to be used by the elite.

[Judi Lynn]

15. Organizations like the IMF feed them right into the shredder.

What Enron and Shell did was nothing short of a CRIME. They took unmistakable unfair advantage of that poor, poor country.

I only wish I had more time to read what kind of US-owned @$$holes used to run Bolivia before the citizens started trying to get better government, after too many years of suffering. It would really help to know.

[Robbien]

17. No expert here but

In the fifties Bolivia tried a populist government, but due to external interventions and after a lot of turmoil. it failed and the military reigned during the 70's through the 90's. One dictator after another (all backed by the US) poverty and privatization galore.

The water deal was what broke the trend. Since 2000 the people no longer are sitting back and taking the crap and kept throwing out bum after bum.

Morales was good in the struggle. Hopefully he can now also lead the country.

[BrotherBuzz]

18. I'm no expert either, but....

a little birdie whispered in my ear that the CIA's number one job in South America, besides keeping up the heat on Hugo Chavez, is to destabilize Bolivia's economy by disrupting all ventures Evo Marales attempts at every turn. If the black ops boys can gain traction, the State Department will join in the efforts by vilifying Morales. I can hear Condi's words already! Buckle-up for the Great South American Gas war!

<snip>


Bolivia has been placed on the National Intelligence Council's list of 25 countries where the United States will consider intervening in case of “instability.”

This is scary talk for Latin American countries. Would the United States invade Bolivia? Given the present state of its military, unlikely.

Would the United States try to destabilize Bolivia's economy while training people how to use military force to insure Enron, Shell, British Gas, Total, Repsol, and the United States continues to get Bolivian gas for pennies on the dollar? Quite likely.

And would the White House like to use such a coup as a way to send a message to other countries? You bet. President Bush may be clueless on geography, but he is not bad at overthrowing governments and killing people.

Will it be as easy as it was in the old days when the CIA could bribe truckers to paralyze Chile and set the stage for a coup? Nothing is easy in Latin America anymore.

<more>

http://www.globalresearch.ca/index.php?context=viewArticle&code=HAL20051124&articleId=1322

[Bacchus39]

39. No US base in Paraguay

more unsubstantiated rumor. here is what the Paraguayan VP says:

Santiago, Aug 30 (EFE).- Visiting Paraguayan President Nicanor Duarte said here Tuesday that "there will be no (U.S.) military base" in his country.
"In Paraguay, there will be no U.S. military base or any facility of that kind whatsoever because we're a sovereign country, we're part of Mercosur (Southern Cone trade bloc) and we want, above all, the stability of democracy," he emphasized.
Duarte commented during a joint press conference at the La Moneda presidential palace with his Chilean counterpart and host, Ricardo Lagos.
Although he ruled out the possibility that any foreign military bases would be set up in his land-locked South American country, Duarte noted that military cooperation between Paraguay and the United States dated back 20 years.
And he also announced that soon some 400 U.S. soldiers would arrive in Paraguay "for military maneuvers and exercises of a social nature."
He explained that currently there are 37 U.S. soldiers in an isolated portion of the country working on a program to provide medical care to the local population, and he confirmed that "that cooperation is under way and will continue."


http://esp.mexico.com/notimexico/?method=una&id=4459&lang=eng


and here is the US Government's denial

http://usinfo.state.gov/media/Archive/2006/Jan/12-623470.html

[BrotherBuzz]

57. Sounds like everyone is catapulting the propaganda...

There is is no dispute that the base exists. Is it a secret US base, or a U.S.-financed secret mercenary army base designed to operate under the radar?

• On June 1, 2005 the Paraguayan National Congress entered into an agreement with Washington that allows U.S. troops to enter into Paraguay for an 18-month period.

• The troops will help train Paraguayan officials to deal with narcotrafficking, terrorism, government corruption and domestic health issues.

• The agreement grants the U.S. troops legal immunity from possible offenses committed during their stay.

• Washington has long sought similar immunity for its troops in the Southern Cone, but Argentina and Brazil have firmly restricted granting such judicial liberty to U.S. troops.

• Bolivian officials and its press are also speaking out against the agreement, fearing the U.S. presence as a means to control the petroleum and natural gas sources in their country.

• Though Asunción and Washington claim that the U.S. has no intentions of establishing a permanent base in Paraguay, history shows a strange resemblance between the current situation in Paraguay and the development of the Manta base in Ecuador from a “temporary” facility into a major base.


Secret Invasion: US Troops Steal into Paraguay

By W.T. Whitney Jr

12/29/05 "ICH" -- -- The Bush administration has sent troops into Paraguay. They are there ostensibly for humanitarian and counterterrorism purposes. The action coincides with growing left unity in South America, military buildup in the region and burgeoning independent trade relationships.

In a speech on July 26 in Havana, Fidel Castro took note of the incursion and called upon North American activists to oppose it. In that vein, an inquiry is in order as to why the US government has inserted Paraguay into its strategic plan for South America. In addition, we should look at factors that favor Bush administration schemes for the region and others that work against US plans.

In December 2004, the Bush administration canceled $330 million in economic and military aid to 10 South American countries. They were being penalized for turning down a US request for granting its soldiers immunity from prosecution for crimes they commit within the countries’ borders.

On May 5, however, the government of Paraguay took the bait. It signed an agreement authorizing an 18-month stay, automatically extended, for US soldiers and civilian employees. The previous limit had been set at six months. On May 26, in a secret session, Paraguay’s Congress passed legislation protecting US soldiers from prosecution for criminal activity, both within Paraguay and by the International Criminal Court.

<more>

http://www.informationclearinghouse.info/article11409.htm

[Bacchus39]

58. it is not a base

the US troops do alot of training with other countries. None of your points confirms the claims that the US is developing a military base there. nor does it contradict the Paraguayan President's assertion that there will be no base in Paraguay although they will conduct joint military exercises and training.


the Bolivian "connection" is pure speculation.

the US does in fact have real bases in Honduras and Cuba of course.

[BrotherBuzz]

60. Of course there's no base, it's a secret...

and you can see the Major, Major Major Major, in his office is when he's out. If he's in, you can't see him.

[Bacchus39]

61. yeah, and the President of Paraguay doesn't know what he is

talking about.

[BrotherBuzz]

62. Maybe, but he knows exactly how much jingle he put in his pocket

[Judi Lynn]

12. Kick!

:kick: :kick: :kick:

[IndianaGreen]

16. Condi Rice will now accuse Morales of giving shelter to Al-Qaeda

We have threatened so many countries with attack or sanctions that we are reduced to shouting at the wind.

[tocqueville]

19. Bolivia Leader Orders Army to Gas Fields

8 minutes ago

LA PAZ, Bolivia - President Evo Morales ordered soldiers to immediately occupy Bolivia's natural gas fields Monday and threatened to evict foreign companies unless they sign new contracts within six months giving Bolivia majority control over the entire chain of production.

Morales said soldiers and engineers with Bolivia's state-owned oil company would be sent to installations operated by foreign petroleum companies.

"The time has come, the awaited day, a historic day in which Bolivia retakes absolute control of our natural resources," Morales said in a speech from the San Alberto petroleum field in southern Bolivia to decree what he called a nationalization of the natural gas industry. The field is operated by Brazil's Petroleo Brasileiro SA in association with the Spanish-Argentine Repsol YPF SA and France's Total SA.

Bolivia has South America's second largest natural gas reserves after Venezuela, and all foreign companies must turn over most production control to Bolivia's cash-strapped state-owned oil company, Yacimientos Petroliferos Fiscales Bolivianos, Morales said.

http://news.yahoo.com/s/ap/20060501/ap_on_bi_ge/bolivia_gas_5

[gordianot]

20. There are lingering disputes in South America.

How long will it be before they surface again? Maybe this time we will stay out.

from FT.COM

Bolivia expels Brazilian steel group to settle power struggle
By Hal Weitzman in Limaand Jonathan Wheatleyin São Paulo
Published: April 22 2006 03:00 | Last updated: April 22 2006 03:00

Bolivia has ordered a Brazilian steelmaker to leave the country, the first expulsion of a foreign investor since Evo Morales, the leftwing president, took office in January.

The government's action is intended to settle a power struggle between the Morales administration in La Paz and local interests in the south-eastern Amazon region that resulted in the kidnapping of three cabinet ministers and the closure of the international border.

[BrotherBuzz]

21. I wonder if anything is any stirring over the hill?

Dark Armies, Secret Bases, and Rummy

by Conn Hallinan

November 24, 2005


It would be easy to make fun of President Bush's recent fiasco at the 4th Summit of the Americas in Mar del Plata, Argentina. His grand plan for a free trade zone reaching from the Artic Circle to Tierra del Fuego was soundly rejected by nations fed up with the economic and social chaos wrought by neoliberalism. At a press conference, South American journalists asked him rude questions about Karl Rove. And the President ended the whole debacle by uttering what may be the most trenchant observation the man has ever made on Latin America: “Wow! Brazil is big!”

But there is nothing amusing about an enormous U.S. base less than 120 miles from the Bolivian border, or the explosive growth of U.S.-financed mercenary armies that are doing everything from training the military in Paraguay and Ecuador to calling in air attacks against guerillas in Colombia. Indeed, it is feeling a little like the run up to the ‘60s and ‘70s, when Washington-sponsored military dictatorships dominated most of the continent, and dark armies ruled the night.

U.S. Special Forces began arriving this past summer at Paraguay's Mariscal Estigarribia air base, a sprawling complex built in 1982 during the reign of dictator Alfredo Stroessner. Argentinean journalists who got a peek at the place say the airfield can handle B-52 bombers and Galaxy C-5 cargo planes. It also has a huge radar system, vast hangers, and can house up to 16,000 troops. The air base is larger than the international airport at the capital city, Asuncion .

Some 500 special forces arrived July 1 for a three-month counterterrorism training exercise, code named Operation Commando Force 6.

<more>

http://www.globalresearch.ca/index.php?context=viewArticle&code=HAL20051124&articleId=1322

[Judi Lynn]

26. It's doubtful very many Americans know about this base and its functions

From your excellent article:

The Eloy Alfaro base is used to rotate U.S. troops in and out of Columbia, and to house an immense network of private corporations who do most of the military's dirty work in Columbia. According to the Miami Herald , U.S. mercenaries armed with M-16s have gotten into fire fights with guerrillas in southern Columbia, and American civilians working for Air Scan International of Florida called in air strikes that killed 19 civilians and wounded 25 others in the town of Santo Domingo.

The base is crawling with U.S. civilians—many of them retired military—working for Military Professional Resources Inc., Virginia Electronics, DynCorp, Lockheed Martin (the world's largest arms maker), Northrop Grumman, TRW, and dozens of others.

It was U.S. intelligence agents working out of Manta who fingered Revolutionary Armed Forces of Colombia leader Ricardo Palmera last year, and several leaders of the U.S.-supported coup against Haitian President Bertram Aristide spent several months there before launching the 2004 coup that exiled Aristide to South Africa.
(snip)

Sun Myung Moon has grabbed a huge bit of Paraguayan land for his organization, not far from this U.S. base, and over a huge resevoir of subterranean water. DU'ers have posted articles on the elder _Bush's ally, Rev. Moon previously. Here's a quick Moon Paraguay article from google:

Posted 09/08/2005
U.S. base in Paraguay established to protect Sun Myung Moon's water and land resources
Wayne Madsen – WayneMadsenReport.com
August 9, 2005

With U.S. troops currently protecting Halliburton's oil operations in Iraq and the CentGas pipeline in Afghanistan, U.S. troops are now being sent to Paraguay, complete with immunity from criminal prosecution by Paraguay or the International Criminal Court, to protect the millions of acres of Paraguayan water and land resources bought over the years by religious cult leader Sun Myung Moon. It is not coincidential that Moon's Unification Church has many followers within the Bush administration. Last month, 500 U.S. troops arrived in Paraguay to expand the Mariscal Estigarriba air base to handle large U.S. military transport planes. Moon's land acquisitions in Chaco Province are just north of the huge Guarani aquifer, one of the world's largest sources of fresh water. In addition, Moon has acquired large tracts of land on the Brazilian side of the Paraguayan border. Local villagers in Paraguay and Brazil claim that most of Moon's land acquisitions were fraudulent and illegal. Moon's World Unification Church operates in Paraguay under a corporate contrivance called the Victoria Company. Paraguay has also announced that everyone entering and leaving Paraguay will be photographed and fingerprinted. Not coincidentally, the new border control system is being financed by South Korea.

There is clearly a split within the Paraguayan government, with the Vice President and Pentagon neo-con ally Luis Castiglioni negotiating, along with a majority in the Paraguayan Congress, close bilateral military ties with the United States, apparently without the concurrence of President Nicanor Duarte. It is no coincidence that considering the oil-centric Bush administration, the Mariscal Estigarriba air base is close to large Bolivian natural gas reserves in the neighboring Bolivian provinces of Santa Cruz and Tarija.
(snip/...)

http://www.thetruthseeker.co.uk/article.asp?ID=3447

[BrotherBuzz]

27. This quote in the article woke me up.....

“Privatizing” war is not only the logical extension of the Bush administration's mania for contracting everything out to the private sector; it also shields the White House's activities from the U.S. Congress. “My complaint about the use of private contractors,” says U.S. Rep. Jan Schakowsy (D-IL), “is their ability to fly under the radar to avoid accountability.”

[Judi Lynn]

28. Absolutely obscene.Completely satisfies their appetite for unchecked power

It's a madman's paradise, for sure. There seems to be nothing to stop him, unless some Republicans regain their long-lost consciences and start bringing a little morality with them to Congress, which is so doubtful.

Looks like the sky's the limit for monsters like _Bush and his coterie of sub-human ghouls.

[Selatius]

22. Sounds like what Mossadeq did in Iran back in the 1950s.

We all know what happened to Mossadeq by 1953: He was overthrown and replaced with a pro-US/UK dictator. Mossadeq, too, was democratically elected by the people.

[gratuitous]

23. Gee, this sounds kind of serious

And I don't mean that in a flippant way. I'm not sure what all the issues involved are, but it at first blush, it looks like the sort of action that could have a lot of repercussions in a lot of different areas.

Thank the good lord above President Cuckoo Bananas is in office. He'll know what to do about this before anything bad happens to the American people.

Right?

[gordianot]

24. I agree.

These are the kind of problems that bite, those that come out of no where. I will sleep better at night knowing that Blivet is on the job.

I'm sure he might know where South America is located, the home of Juan Valdez and Hugo Chavez.

[paul_fromatlanta]

31. The major fallout will likely be with their biggest investor - Brazil

And until this week, perhaps their closest friend.

[Zynx]

35. I actually own shares in Petrobras and I have advised friends and family

to buy it as well(and we've all enjoyed almost $20 a share in gains) so I am well versed in this situation. Brazil is not happy about this and will be able to pressure Bolivia for an arrangement whereby Petrobras will still make some money, though Bolivia's share of profits will increase. That change is not material to Petrobras, which interestingly is responsible for more than a tenth of Bolivia's entire GDP.

[paul_fromatlanta]

36. Its been a great run up - but would you really buy now at $100?

I remember my Dad got out $60... It's just been such a big runup... Bolivia is only a few percent of Petrobras revenues and I see its already recovered from the initial shock.

[Zynx]

37. I wouldn't buy any more now.

I'm thinking of lightening up, actually. However, I am holding most of it for the long haul since they are inceasing production at the fastest clip of any oil company that I have found.

[paul_fromatlanta]

38. Thank you I appreciate that input

I enjoy contrarian investing, especially since my father and I are competitive but I just cant pull the trigger on this one right now.

[Zynx]

40. I would reccomend the Brazilian banks if and when they pull back.

Credit growth in Brazil is exploding and it is a long term story. I personally own Banco Itau(symbol: ITU) and it is doing very well. However, given Brazilian economic cycles I would wait for a good pullback and buy when no one else wants them.

[Halliburton]

25. that gives Exxon an excuse to raise prices a few more cents

[paul_fromatlanta]

29. So nobody here has a problem with socialism, nationalization etc?

How on earth is this progrssive or liberal? Time after time this leads repression, dicatatorship and more poverty than ever and less protection for the environment.

[Bacchus39]

33. what was the army sent in for??

Chavez did the same thing with cattle ranches. why does the military have to take control? Can't the State renegotiate and/or expropriate through the legal system?

[paul_fromatlanta]

34. Socialst dictatorships arise in the face of oppression and abuse

That's why they look attractive at first. The people really are oppressed, its not their immagination. But the real leaders of the socialist state are educated - they know the history and they know the only way to stay in power is with force, gradually applied.

[Solon]

41. Yeah, but only after the US overthrows the government that did it...

Look up what we did to Iran in the 1950s, also, oil and natural gas are considered national resources and should be under control of the government. The only difference I can think of between what Morales is doing and what either the US or Canada does is that here, we keep the "illusion" that such resources are in private hands, but our governments, federal, state, local, all own over 50% of those resources. Unlike Bolivia, our governments actually were able to assert control in the managment of these resources, now Bolivia reasserts its own control over its own resources, and you complain? Doesn't that seem a tad hypocritical, don't they have a right to control their own resources?

[One_Life_To_Give]

30. Good Thing or Bad Thing?

Nationalizing the assets of a private company because you are short on cash is questionable at best.
It sends a strong signal to the world to Not Invest in Bolivia.

[paul_fromatlanta]

32. Pretty clearly bad, except for the new rulers.

Whatever gains the common people get in money will likely be lost quickly in diminished freedom.

[Robbien]

42. The term nationalization is used incorrectly by the media

What Morales has done is tell the oil companies he is serious about the renegotiation of their contracts. When Morales took office he told the oil companies their contracts were void because they were set up without government approval (the previous corrupt dictators arranged all contracts in secret). The oil companies ignored him.

Now Morales is giving the oil companies 180 days to renegotiate their contracts. Meanwhile Bolivia will be in charge of all gas pumped in the meantime.

Yes, he is holding a sledge hammer to their heads, but the oil companies were not interested in renegotiations before this time.

[killbotfactory]

52. National Resources belong to the people of the nation

Not a private company. If they want to contract out the work to a private company, or do it themselves, it should be up to them.

[Al122]

56. Nonsense

Venezuela has renegotiated contracts with Exxon-Mobil, Chevron and Texaco to gain more control of its oil industry, just like Bolivia is doing now with natural gas. Those companies haven't gone anywhere and won't as long as there is still money to be made in Venezuela. The only diffrence now is that a meaningful portion of those profits will now be shared with the people of Venezuela and Bolivia, and help them to achieve a higher standard of living. Under the old "Washington Consensus" the poor of Venezuela and Bolivia were ignored.

Thank God they have finally elected leaders who have the guts to stand up for them.

We could use a little (I mean a lot)of that right here in the U.S.

[Canuckistanian]

43. Does everyone realize what Bolivia has done?

The Gas Decree:

1. The state takes control of all gas fields

2. Companies have six months to renegotiate contracts or be expelled

3. They will be obliged to sell at least 51% of their holdings to the Bolivian government

4. The two largest gas fields - San Alberto and San Antonio - must give 82% of production to the state, up from 50%

5. The state will take 60% of production from other fields

6. Details of new contracts to be worked out on a case-by-case basis

This is huge! Bolivia is now setting it's own terms for the production of oil and gas.

No more giveaways to the big oil companies for a pittance of royalties.

National control of production, pricing, and distribution.

All in all, a drastic reduction in profit taking for foreign companies.

Smart people, these Bolivians.

Wonder how long the new government will last?

See this atricle in BBC News:
"Bolivia gas move met with shock"
http://news.bbc.co.uk/2/hi/americas/4964300.stm

[Eugene]

44. AP: Bolivia Plans to Nationalize More Sectors

Bolivia Plans to Nationalize More Sectors


Wednesday May 3, 2006 2:01 AM

AP Photo DG103

By ALVARO ZUAZO

Associated Press Writer

LA PAZ, Bolivia (AP) - Bolivia's leftist government said Tuesday it would extend control
over mining, forestry and other sectors of the economy after President Evo Morales
nationalized the country's huge natural gas industry. Foreign governments warned relations
could be damaged.

Soldiers were posted at 56 gas installations around the country a day after Morales issued
a decree that analysts say could drive petroleum companies from South America's poorest
nation and isolate Bolivia from important allies like Brazil and Spain.

The move solidifies Morales' role alongside Venezuela's Hugo Chavez and Cuba's Fidel Castro
in Latin America's new axis of socialist-inclined leaders united against "capitalist,
imperialist" U.S. influence.

<snip>

Morales said Monday that the gas decree "was just the beginning, because tomorrow it will be
the mines, the forest resources and the land." Morales' planning minister earlier this month
spoke of plans for "drastic reforms" of mining laws.

<snip>

Full article: http://www.guardian.co.uk/worldlatest/story/0,,-5795447,00.html

[Judi Lynn]

46. Bolivia defends gas industry seizure amid criticism

Bolivia defends gas industry seizure amid criticism
Raul Burgoa | La Paz, Bolivia
03 May 2006 07:40

Bolivia defended on Tuesday the government's seizure of its vast natural gas industry after the move triggered deep concerns among major foreign investors.

Brazil, a huge consumer of Bolivian gas, and Spain expressed worry, while the United States said it was keeping an eye on the situation, one day after leftist Bolivian President Evo Morales gave foreign gas and oil investors 180 days to renegotiate their contracts with Bolivia's state-owned oil and gas company.

The government, which sent troops to guard the gas and oil fields, defended its decision.

"The {international gas} companies are going to keep making money, but now theirs will be normal profits," Vice President Alvaro Garcia Linera said.

"Before the decree, operating in Bolivia was like winning a lottery because their profits were abusive," Garcia Linera said on Bolivian television.
(snip/...)

http://www.mg.co.za/articlepage.aspx?area=/breaking_news/breaking_news__business/&articleid=270604

(emphasis mine)

[winston61]

48. It's about time-

You can't blame these people for being tired of bled white by American yankees robbing them. If the rest of the world will isolate the US, maybe we can get some changes here too.

[King Coal]

49. Spain, Britain, and France? Yankees? News to me.

[Bridget Burke]

50. Some Texans think EVERY non-Texan is a Yankee.

I don't.

If course, even though I've lived in Texas since I was 4 years old, I was born in New Hampshire.

[winston61]

55. Now take it easy on me,

I'm not a native Texan, been here a long time though and believe me it ain't all God's country.

[Bridget Burke]

59. From the context....

Yanqui might have been more fitting. Just another name for us residents of Gringolandia.

(Poor Mexico--so far from God, so close to the USA.)

[winston61]

54. You are right, my bad,

I forgot the corporate states has partners in crime. It's not just us.

[Judi Lynn]

51. I can see how they got good and ripping furious when the American

company, Bechtel, bought the rights to their water, started charging them several times the former price for water in every home, and even got legislation going to forbid them to collect rainwater in barrels to drink for free.

Only truly sick, twisted, evil people would dream of trying to possess something as vital as water and holding it for ransom so expensive, that the very poor could barely manage to pay for enough to keep themselves alive, not to mention cleaning their clothes, cooking, and cleaning.

They had to be driven beyond endurance to get to the point they had to, at personal risk, rebel. God bless those beleaguered, exploited, raped people.

[Haole Girl]

53. Oil groups weigh up their options in Bolivia

Oil groups weigh up their options in Bolivia

By Roland Gribben
May 4, 2006

OIL companies are reviewing investment programs in South America after the third of Latin America's "three amigos" moved to take control of oil and gas assets.

Evo Morales, the president of Bolivia, sent troops to occupy oilfields after signing a decree authorising state control. He stopped short of outright nationalisation.

He wants foreign oil companies to accept new and more onerous operating terms or to pack their bags and leave a country that boasts the second-largest gas reserves in the region.

There was a guarded reaction from the oil club, including BP and BG Group. They are modest players (British Gas gets less than 3 per cent of its production from Bolivia) compared with Petrobras of Brazil, which accounts for more than 45 per cent of Bolivia's gas production. But the latest manifestation of the political shift in Latin America is producing food for thought in the boardrooms of oil companies and other foreign investors.

Hugo Chavez, president of Venezuela, the region's largest oil producer, started the energy revolution by imposing tougher operating terms and retrospective tax increases...

http://www.smh.com.au/news/business/oil-groups-weigh-up-their-options-in-bolivia/2006/05/03/1146335805347.html