Peter Howard Wertheim
OGJ Correspondent
RIO DE JANEIRO, Mar. 23 -- The new Bolivian government said it intends to complete the nationalization of the country's hydrocarbon resources by July 12.
President Evo Morales said oil and gas reserves will be nationalized through individual negotiations with license holders.
"The region and the nation should take advantage of these natural resources," said Morales. "They are a natural resource that gives hope to the Bolivian people, to the most abandoned and exploited sectors."
Edwin Miranda, a spokesman for Yacimientos Petroliferos Fiscales Bolivianos (YPFB), the national oil and gas company, said contracts with companies operating in Bolivia are being renegotiated and should be completed by the deadline.
Bolivia has 55 tcf of gas reserves, the second largest in South America.
Twelve companies are active in Bolivia. The leading operators are Repsol-YPF; Petroleo Brasileiro SA (Petrobras), the largest company in Bolivia; BG Group PLC; and Total SA.
The hydrocarbons law enacted in May 2005 requires them to sign new production sharing contracts that impose taxes and royalties amounting to 50% of the value of production. Companies not signing the contracts will be forced to suspend operations.
