Bolivia takes over four oil companies and one communation enterprise

Caracas, Venezuela, 1 May 2008. Today, the Bolivian government of Evo Morales Ayma formally nationalized four oil companies: Transredes (Shell), Andina (Rapsol), Chaco (BP) and CLHB. From now on they will be under the direct control of the National Bolivian Oil Company - Yacimientos Petrolíferos Fiscales Bolivianos (YPFB).  The nationalization action was not duly agreed by three of the four oil companies. Only Andina - a subsidiary of Spanish Repsol with 18 oil fields in Bolivia- decided to negotiate 50 % of its shares with the government in an early Joint Venture deal. The remaining companies will negotiate the terms of the sales of their share to the government but in a weaker position.

In a similar move today, the Evo Morales Ayma government also nationalized the telecommunication enterprise Empresa Nacioanal de Telecomunicaciones (Entel) which was under the management of Euro Telecom.  Entel was partially privitized in 1996 under the Presidency on Neo Liberal Bolivian President Gonzalo Sánchez Lozada in 1996. Italian Stet bought 50% of the shares which it then sold to Euro Telecom. This nationalization was already proposed two years ago but Euro Telecom would not agree to the proposed terms. Thus, it filed a case at the International Center for the settement of Investment Disputes (ICSID) in October 2007. In response to the filing of the case, Bolivia left the ICSID and continue direct negotiations with Telecom. Despite de recent nationalization, the ICSID Case No. ARB/07/28 remains pending.     

Sources: ABI, ICSID, Unionradio, Prensa Latina,