Reactions to Evo's Oil and Gas Nationalization Decree
Bloomberg reports that Repsol and Petrobras may face losses. Oil analysts from the Deutsche Bank AG in New York are quoted as saying that this is a worse scenarion than expected. It is expected that only a portion of oil production goes back to the Bolivian government, not all of it. The managing director of Global Gestion says that Bolivia has impacted on hydrocarbons production and that the impact is mostly psychological. On the contrary, an analyst at Raymond James & Associates says that this will not have a significant effect on energy companies' earnings and says that Bolivia can improve its revenue without affecting much at the companies economics. However, Repsol's shares are down 2.19% (at 12:35GMT).
According to La Razon, Brazilian Mines and Energy Minister described the decree as "an unfriendly action that can be understood as a break from all agreements with Bolivia". Petrobras said that the decree changes current regulation and that in all previous negotiations there were no hints that 'nationalization' would be so hard.
In the same article, Spanish Foreign Ministery expressed Zapatero's concern and hopes of negotiation and dialogue taking place, so that the interests of all parties can be protected. The Partido Popular (PP) said that they expect the Spanish government to defend Sapnish interests and interprets Morales' decree as a failure for Zapatero's foreign policy.
According to El Pais, Repsol would be willing to negotiate new contracts with the Bolivan government. So far, they are waiting to hear details about nationalization and are confident to reach an agreement and stay in Bolivia.
In Bolivia, reactions ranged from happiness (in El Alto, where fireworks were heard) to denounces of fraud and uncertainty. So far, the reactions can be divided in 3:
Support for the government's decree: COR El Alto, Teachers' Union, Miners' Union, Chaco Civic Committee,
Undecided: Santa Cruz Civic Committee, principal opposition group Podemos and Private Entreprenuers.
Against the decree: Opposition groups UN, energy-rich region Tarija and the COB.
According to Los Tiempos, the reactions from social groups in Bolivia is somewhat different:
Undecided: COR ElAlto
Against: COB, ADN, M-17
According to Los Tiempos, Evo is planning to nationalize the Mining and Forestry sectors. He referred to the gas and oil nationalization as the "first step".
The soldier 'recovering Bolivian property from looters'.
Note the t-shirt from the supporter behind: "Che, Fidel, Chavez, Evo". Does anybody else feels nausea?
The military in control of a Petrobras building.
A well-shot photo from La Prensa, showing the military in control of a Petrobras oil installation.
A list of oil/gas fields and their owners, from La Prensa:
Bolivia, Bolivien, Evo, Evo Morales, Oil, Nationalization, Natural Gas, Repsol, Petrobras