Morales Pushes Energy Nationalization - AP

[Eugene]

Source: Associated Press

Morales Pushes Energy Nationalization
Saturday May 12, 4:39 pm ET
By Dan Keane, Associated Press Writer

Bolivia's Morales Vows to More Forward With Campaign to
Nationalize Oil and Gas Industry

LA PAZ, Bolivia (AP) -- President Evo Morales vowed to move forward
with his campaign to nationalize Bolivia's oil and gas industry while
presiding Saturday over ceremonies marking the transfer of two
Brazilian-owned oil refineries to state hands.

Bolivia this week agreed to buy back formerly state-owned refineries
from Brazilian state energy company Petroleo Brasileiro SA for $112
million.

On Friday, the government announced it would negotiate the purchase
of a majority share in the Bolivian operations of four more foreign
companies, as dictated by Morales' nationalization decree last year.

-snip-

The four businesses to be targeted are: pipeline company Transredes,
part owned by Royal Dutch Shell; the gas exploration company Chaco,
owned by the British company BP; gas exploration company Andina,
subsidiary of the Spanish-Argentine company Repsol YPF; and the
Hydrocarbons Logistics Company of Bolivia, jointly owned by the
German company Oiltanking GmbH and the Peruvian company Grana y
Montera SA.

-snip-

Read more: http://biz.yahoo.com/ap/070512/bolivia_nationalization.html

[David__77]

1. Good.

I think it would be smart to allow minority foreign investment, but only on terms that ensure local productivity spillovers. Generally, energy should be a public sector.