Bolivia takes control of energy resources
Bolivia takes control of energy resourcesBy Larry Moonze in Havana, Cuba
Tuesday May 08, 2007 [04:00]
THE Bolivian government has taken control of energy resources in which it is estimated the government will be collecting revenue amounting to US $1.57 billion. The control of energy reserves followed the signing of 44 oil contracts with 12 transnational companies.
Bolivia's President Evo Morales, a former trade unionist, has promised his nationals that his administration was determined to nationalise key aspect of the economy to benefit citizens the majority of whom lived in poverty. President Morales is the first indigenous leader in Bolivia in 500 years.
In this highly publicised event, coming only one year and one day after issuing the nationalisation decree, President Morales signed the agreements to regulate the future relationship between the State, represented by Yacimientos Petroliferos Fiscales Bolivianos (YPFB) and the oil companies.
President Morales committed himself to respecting foreign investment in the country.
"As a State, as Bolivians, as a nation, as authorities, we have the obligation to honour those agreements, respect legal security, but we also invite you to do the same," President Morales told the representatives of the transnational oil companies.
On signing the accords YPFB took real control over the oil fields that were in the hands of foreign companies and whose production will be commercialised by the Bolivian state-owned company.
In a related development, another leftist country Venezuela, a close ally of Bolivia stated that recovering economic sovereignty rose as a development booster in Venezuela and allowed the government announce a package of labour benefits.
Venezuela's President Hugo Chavez declared that as of May 1, the government had completed the nationalisation and control by state-run Petroleos de Venezuela S.A. of Franja Petrolifera del Orinoco.
According to Prensa-Latina, PDVSA now owns 60 per cent of shares on an area gauged as the largest world oil reserve rescued from transnational domain since the 90s.
President Chavez called the nationalisation burial of the past oil opening which was harmful to the national economy.
He also announced that Venezuela had left the International Monetary Fund and World Bank.
Labels: ENERGY, EVO MORALES, HUGO CHAVEZ
posted by MrK @ 3:39 AM
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