Bolivia nationalizes natural gas industry

[Unspeakable Horror]

Originally posted by Brachy-Pride
Bolivia only sells gas to its neighbours, Argentina and Brazil, Morales says he is selling the gas to cheap to both Argentina and Brazil, so the 3 countries will make an improved new deal for Bolivia.

Actually Bolivia is forcefully changing the previous agreement.

To export gas to other countries bolivia would need a sea port, which she doesnt have, and the ability to liquify (does that word exist?) , I mean, turn gas into liquid, which can be sent by ship to other countries, which she also doesnt have.

This wont hurt bolivia because she already has the large reserves and the pipes to brazil and argentina.

There are some pipes but not to transport the amount required by us (I don´t know about Brazil) Repsol - YPF was going to invest in more pipes to transfer more gas to Argentina but that plan was killed by the this and the increment in gas price.

[Barnabas]

Lets see how Lula deals with this without looking like a right winger.

[Darius871]

Originally posted by Brachy-Pride
Lets see how Lula deals with this without looking like a right winger.

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060503:MTFH75283_2006-05-03_22-36-09_N03408649&symbol=PETR4.SA&rpc=44

[Flubber]

Originally posted by chegitz guevara
You might want to consider that this is the first popular government Bolivia has had since 1964, all the intervening governments being either military dictatorships or minority representation (based on keeping the Indians out of politics). If you make deals with a dictator or a minority government, you have no right to squeel when the people expropriate your ill-gotten gains.

Hmm so you are saying the prior governments are not legitimate so NO DEAL can be legitimate. That would cut off quite a number of foreign companies from investment,

Also Canada currently has a government based on minority representation so I guess people can't expect those deals to be honored either.

What exactly is your litmus test for a country you can do business with ?

[Colonâ„¢]

Originally posted by chegitz guevara
You might want to consider that this is the first popular government Bolivia has had since 1964, all the intervening governments being either military dictatorships or minority representation (based on keeping the Indians out of politics). If you make deals with a dictator or a minority government, you have no right to squeel when the people expropriate your ill-gotten gains.

Would be a bit simplistic to denote this gov't as the first popular one. It's true that Morales won by a large margin, but there's a dichotomy between the poorer, indigenous east and the richer, business-minded west within the country, and his support is predominantly based in the west. His election already increased separatist calls in the east, so he is by no means liked by all.

[Last Conformist]

Originally posted by Colonâ„¢

but there's a dichotomy between the poorer, indigenous east and the richer, business-minded west within the country,

That would be the other way around.

Interesting idea that deals with minority gov'ts need not be honoured ...

[Eli]

So deals with the 2000-2004 Bush administration also dont need to be honored, since it's not certain Bush actually won?

[Last Conformist]

It would seem certain he only got a minority of votes, so by che's logic presumably yes.

[Colonâ„¢]

Originally posted by Last Conformist
That would be the other way around.

I always confuse the Hutus and the Tutsis as well.

[Ramo]

IIRC there were questions as to the Constitutionality of the deals since they weren't approved by the Bolivian Congress.

[Flubber]

Originally posted by Ramo
IIRC there were questions as to the Constitutionality of the deals since they weren't approved by the Bolivian Congress.

So a government can do a deal and then act upon it, presumably granting lands for pipelines and land access and the thousand other little things that go into a natural gas development . . . then after billions are expended, said government can say 'ooops we forgot to do an internal government thing"

[Flubber]

Oh adn I'm guessing on che's logic that no one should expect agreements with China to be honored

[Colonâ„¢]

Originally posted by Ramo
IIRC there were questions as to the Constitutionality of the deals since they weren't approved by the Bolivian Congress.

Has it ever been taken to court? In any case, congress did approve of the 2005 Hydrocarbons law, which included the deals (if only as a matter to be renegotiated).

[Dinner]

I'd like to point out the Bolvia's previous natonalization of the oil and gas sector didn't go so well. I see no reason why this time will be different.

[Kidlicious]

Originally posted by Flubber
What exactly is your litmus test for a country you can do business with ?

Any country that you can intimidate.