BP agrees to Bolivian takeover

[Judi Lynn]

Source: Irish Sun

BP agrees to Bolivian takeover
Irish Sun
Monday 4th May, 2009

Hundreds of Bolivians showed support during Bolivia's May Day rally to an announcement by President Evo Morales that he had nationalised BP's aviation division.

The state has already taken much of the control of the energy industry in the country.

Morales told the crowd he had signed a decree to take over Air BP, a division of the British oil company.

BP in London said the company had been in talks with the Bolivian government and had agreed a handover of operations.

President Morales has said he intends compensating Air BP for the nationalisation of its Bolivian unit, which supplies jet fuel to 12 airports.

Read more: http://story.irishsun.com/index.php/ct/9/cid/3a8a80d6f705f8cc/id/497395/cs/1/

[imdjh]

1. Bolivia is nationalizing a retail operation? That's not cool.

It's one thing to national energy extraction and export, because a sound argument exists that the oil is a natural and national resource. But nationalizing a retail operation doesn't sound like good policy.

[lsewpershad]

3. WHY NOT?

[imdjh]

4. Why do you think they should?

[EFerrari]

13. Because for hundreds of years Bolivia has been ripped off

by foreign entities.

[imdjh]

14. Victimhood explains it all.

It really does, but not the way you would like perhaps.

BP isn't stealing the jet fuel from Bolivia or anyone else. As I specified in my other post, I can see logic to nationalizing the gas production, because the gas is a national resource. Even so, Petrobras' investment is not something Bolivia can consider forfeit because the national sentiment is one of victimhood.

But unless they plan on paying BP what BP says their business is worth, then this is theft.

[Judi Lynn]

15. BP is not Petrobras. As for stealing from BP, you are seriously confused

if you think that is any part of this situation. Evo Morales is most clearly no pirate, and anyone would know this who has even a glimmering of what has been happening in Bolivia.

Spend less of your time pontificating, and more in struggling to become informed on the subject.

[imdjh]

16. I didn't say it was.

Did I make it too difficult for you by discussing similar issues?

[EFerrari]

17. Since Bolivia is compensating BP, your slandering Bolivia is gratuitous, isn't it?

Victimhood, my granny. Read something. Read how a fake NGO with CIA ties was just busted for plotting to assassinate Morales.

Then come back and tell me that victimhood is simply an excuse. That's a favorite tactic of the right, to upbraid the people for truth telling. Sorry, try it on someone else.

[pattmarty]

2. Can we get a little of this action going here in the States???

:sarcasm:

[WriteDown]

5. Sounds like Bolivia

took a page out of the Sulzberger playbook.

[Judi Lynn]

6. Evo Morales is fulfilling promises already made long ago to the citizens.

Bolivia’s Gas Nationalization: A South American Affair
Written by Justin Vogler
Monday, 08 May 2006

The diplomatic whirlwind following Evo Morales’ takeover of Bolivia’s gas fields has revealed that South American unity is far stronger than critics of the region’s progressive governments like to believe.

How ever you look at it, the surprise "nationalization" of Bolivia’s gas reserves on Monday May 1, international Labour Day, was well timed. That the date marked the hundredth day of Evo Morales’ presidency underlined how a major campaign pledge was being punctually fulfilled. With Morales’ initial honeymoon with the Bolivian electorate starting to wane, Monday’s melodramatics – which saw the army hoisting the Bolivian flag over privately owned gas installations – were in part a rallying cry to Morales’ grassroots support.

"It is a symbolic message of sovereignty," Larry Birns of the Washington-based Council on Hemispheric Affairs is quoted as saying in the Guardian. "The very fact that he sent troops in, he was heightening the sense of urgency and dash. He is reaffirming his commitment to the indigenous community. He has remained constant and he is fulfilling all of his promises."

It is, however, unlikely that the Bolivian government wants to expel multinational gas firms. Morales doesn’t have the capital or the technical know-how to successfully exploit Bolivia’s gas and he needs, and nominally welcomes, foreign investment. The dispute is over the terms under which investors work in Bolivia and, above all, the size of the Bolivian state’s cut. This is clearly, to paraphrase Hugo Chavez, "twenty-first century nationalization" not twentieth century expropriation.

Indeed, Morales position was clearly and consistently articulated long before his election. "We will renegotiate all contracts - they are illegal, since Congress has never ratified them. The state will recover the property of its natural resources, but we are open to foreign investment in exchange for a share of the business."

More:
http://upsidedownworld.org/main/content/view/281/1/

[Judi Lynn]

7. YPFB to hire firm to establish Air BP price

YPFB to hire firm to establish Air BP price
Published: Monday, May 4, 2009 11:32 (GMT-0400)
By Business News Americas staff reporters

Bolivia's state hydrocarbons company YPFB will hire a firm to establish the value of Air BP, the aviation division of UK group BP (NYSE: BP), to negotiate a final agreement as part of Air BP's nationalization.

President Evo Morales on May 1 signed supreme decree 111 that nationalized the jet fuel supplier which has served 15 airports in the country since 2001. The move is part of the government's nationalization of the hydrocarbons sector that began in 2006.

The decree instructs YPFB to value Air BP within 120 days, state news agency ABI quoted YPFB interim president Carlos Villegas as saying.

Villegas also announced the state company has assumed administration of the nationalized company and that there have not been any problems with jet fuel supply.

http://www.bnamericas.com/news/privatization/YPFB_to_hire_firm_to_establish_Air_BP_price

[imdjh]

9. "supreme decree"? That doesn't sound good.

[EFerrari]

10. Are you normally this afraid of foreign governments?

You're not in Miami, are you?

[Joe Chi Minh]

12. I'd much prefer a "begging your pardon, Sir" decree, too. Much nicer. No need to be haughty.

[Vidar]

8. Good for Bolivia. Brava Evo!

[ConcernedCanuk]

11. If most Canadians knew how much of our resources, oil/gas/water are pledged to the USA

.
.
.

while we run short and pay high prices

Canuks would run amok

it's coming . .

soon