Nationalization of Bolivian Oilfields Suspended
Bolivia temporarily suspended a plan to seize
Oil and
natural gas fields controlled by
foreign companies, saying the state oil company lacks the necessary funds to execute the process, Bloomberg quoted La Paz-based La Razon as reporting. The Hydrocarbons Ministry said in a statement last night that the government is seeking $180 million from the central bank to replenish the coffers of Yacimientos Petroliferos Fiscales Bolivianos, the state oil company, Razon said. "Very little advancements'' were made in taking over foreign-owned refineries, raising export prices for natural gas and rewriting contracts with the affected foreign companies, Razon said, citing the statement. Bolivia extended for 60 days the six-month talks with Petroleo Brasileiro SA, Brazil's state-controlled oil company, over raising the price that Brazil pays for Bolivian gas exports, Razon said. Bolivian President Evo Morales seized the assets of Petrobras and other international oil companies on May 1. In July, the Bolivian government began auditing foreign-controlled gas fields on as it was moving forward with the nationalization of its vast natural gas reserves.The audits covered more than 50 fields to determine how much the foreign companies have invested in Bolivia. They were used by Bolivia's state energy company, Yacimientos Petroliferos Fiscales Bolivianos, or YPFB, to negotiate new contracts with the companies.The country nationalized its natural gas industry May 1, giving YPFB majority control over all energy operations in the country and foreign companies six months to negotiate new contracts or leave the country.Bolivia has South America's second-largest natural gas reserves after Venezuela and currently exports its gas to Brazil and Argentina.Among the companies operating fields are Andina SA, a subsidiary of Spain's Repsol YPF; Chaco SA, a unit of Panamerican Energy controlled by Britain's BP PLC and Argentine Grupo Bridas; British Gas; France's Total, and Brazil's Petroleo Brasileiro SA.The nationalization also immediately raised the tax on the production from Bolivia's two largest gas fields to 82 percent from 50 percent.
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