Bolivia Will Not Compensate Oil Companies After Nationalization
By Eliana Raszewski
Nov. 4 (Bloomberg) -- Bolivia will not compensate energy companies such as Spain's Repsol YPF SA and Brazil's Petroleo Brasileiro SA, for the nationalization of oil and gas reserves, said President Evo Morales.
``We have tried to recover our natural resources without expelling anybody, without confiscation, and we have the right to not compensate anybody,'' said Morales at the Summit of Ibero-American leaders in Montevideo, Uruguay.
Morales has nationalized the nation's oil and gas reserves and negotiated new contracts with all 10 energy companies that have interests in Bolivia, including Repsol, Brazilian state- controlled Petrobras and France's Total SA. Morales said Bolivia may expel companies that are not following the country's rules.
Petrobras, Brazil's state-controlled oil company, this week averted the seizure of assets by agreeing to pay a royalty in a new 30-year production contract, ending months of negotiations between Morales' administration and foreign energy companies in Bolivia, where the former leader of coca growers has pledged to spread more of the nation's energy wealth to citizens.
Last weekend, the government signed 10 agreements with oil companies that have interests in Bolivia, mostly for exploration only.
To contact the reporter on this story: Eliana Raszewski in Buenos Aires eraszewski@bloomberg.net
Last Updated: November 4, 2006 12:02 EST |
