Bolivia

Government takes control of gas company

Article published on the 2008-06-03 Latest update 2008-06-03 11:30 TU

President Evo Morales on 1 May, when he announced plans to nationalise key industries
(Photo: AFP )

Bolivia’s president Evo Morales took over the gas transport company Transredes on Monday in his latest bid to nationalise his country's energy sector. Transredes, which was owned by Royal Dutch Shell and the US company Ashmore Energy, transports natural gas to Brazil and Argentina.

On 1 May Morales had given three foreign-held gas companies a month to cede the majority of their shares to the state, including the British Chaco, German-Peruvian CLBH and Transredes.

Large parts of Bolviva’s energy sector were privatised in the 1990s, with foreign companies getting 50 percent stakes.

The government is now looking to re-nationalise gas distribution and reinforce the state company YPFB (Yacimientos Petroliferos Fiscales Bolivianos).

On Saturday the government announced that British Panamerican Energy company (of the BP group) had ceded its shares of Chaco to YPFB, giving it 51 per cent.

Meanwhile, regions in the eastern part of the country, which have most of the country’s oil and gas reserves, have been clamouring for more autonomy.

Voters in gas-rich Beni and Pando provinces overwhelmingly voted for autonomy from the Morales government on Sunday.

Morales came to power in 2005 promising to transform the lives of the indigenous majority. His rhetoric has aggravated existing cultural rivalries between the mainly poor Indian highlands and the gas-rich lowland states.

Morales is hoping the nationalisations will galvanise his supporters into voting for him in a crucial national referendum on his presidency in August.