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Bolivia Nationalizes Gas Industry

Bolivia`s President, Evo Morales, signed into law contracts officially nationalizing the country`s natural gas industry. In a ceremony in which the agreement made with a number of international corporations in October became official by law, Morales said: "We have now completed the first step. This process will continue next year with the recovery of other natural resources benefiting the Bolivian people."

Morales, who was elected in December 2005, set a six month period in May for the nationalization of Bolivia`s oil and gas deposits. Since he was elected he has feverously worked to keep his promises and to improve social justice in Latin America`s poorest country, which is still taninted by European colonialism. Morales says that the agreements made with the foreign corporations allow the companies to continue operating in the country but under Bolivian terms. Morales added that despite the nationalization, Bolivia not only accepts foreign investments but welcomes them. In the agreement signed with the foreign corporations, the corporations have agreed to invest $3.5 billion in the country`s energy industry over the next 3 years.

Bolivia has the second largest deposits of natural gas in South America after Venezuela, and over 26 foreign energy groups operate within it including: Exxon-Mobil and Total. The government energy company YPFB has become through the nationalization the majority stock holder of the foreign company`s Venezuelan subsidiaries. The deal stipulates that 82% of the profits will go to the states while the foreign companies will have to settle foe 18%.