Govt. temporarily suspend the nationalization

[Karl Marx's Camel]

Oil & Gas
Monday, August 14, 2006

The Bolivian government announced today that it is temporarily suspending the nationalization of the oil and gas industry. The reason cited is a lack of funds for YPFB, the state oil company. I find it hard to understand how the government could have started such a controversial process without planning how the nationalization would be funded. I think Evo owes Bolivia an explanation.


http://www.boliviaweb.com/blog/



AUG. 13 4:48 P.M. ET Bolivia says it has suspended the nationalization of its oil and gas industry pending a reorganization of the state petroleum company, which lacks the funds and operating capacity to take over production from foreign companies.

A statement issued Friday by Bolivia's Hydrocarbons Ministry said that "full effect" of nationalization would be "temporarily suspended, due to the lack of economic resources" of Yacimientos Petroliferos Fiscales Boliviano (YPFB).

More:

http://www.businessweek.com/ap/financialnews/D8JFP0980.htm

[RedGeorge]

That's a shame. I wonder why they've run out now- and, as one of the articles said, why they couldn't have worked out the finances they'd need beforehand?

[Nothing Human Is Alien]

It wasn't a real nationalization to began with. No surprise.