Energy nationalization suspended

Posted on Monday, Aug 14, 2006 at 11:29 AM in Bolivia

Talk about putting the cart before the horse! Bolivia's Hyrdocarbons Ministry aanounced that the nationalization of oil and gas industries will be temporarily suspended. Seems the state company does not have the fund or operating capacity to take over production. Morale's nationalization program could end up as nothing more than a populist stunt if YPFB can't secure $180 million in financing. How much will failure here hurt the Morales adminstration, especially now as they are in the midst of rewriting the Bolivian consitution? We will see...

An association of Bolivian oil and gas companies announced that since May 1 more than 30 foreign and domestic petroleum businesses have ceased operations or taken their business to other South American countries.