Bolivian Leader Orders Soldiers To Seize Gas Fields

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

LA PAZ, Bolivia – President Morales ordered soldiers to immediately occupy Bolivia’s natural gas fields yesterday and threatened to evict foreign companies unless they sign new contracts within six months giving Bolivia majority control over the chain of production.


Mr. Morales said soldiers and engineers with Bolivia’s state-owned oil company would be sent to installations operated by foreign petroleum companies.


“The time has come, the awaited day, a historic day in which Bolivia retakes absolute control of our natural resources,” Mr. Morales said in a speech from the San Alberto petroleum field in southern Bolivia to decree a nationalization of the natural gas industry. The field has been operated by Brazil’s Petroleo Brasileiro SA in association with the Spanish-Argentine Repsol YPF SA and France’s Total SA.


Bolivia has South America’s second largest natural gas reserves after Venezuela, and all foreign companies must turn over most production control to Bolivia’s cash-strapped state-owned oil company, Yacimientos Petroliferos Fiscales Bolivianos, Mr. Morales said.


An Army spokesman did not immediately return a telephone message seeking comment on when and how the military would act.


Mr. Morales had pledged to exert greater state control over the industry since he won the presidency in December in a landslide.


Multinational companies that produced 100 million cubic feet of natural gas daily last year in Bolivia will be able to retain only 18% of their production, with the rest being given to YPFB, he said. Mr. Morales did not name the companies.


Other major petroleum companies doing business in Bolivia, besides Petroleo Brasileiro and Repsol, include Britain’s BG Group and BP and American-based Exxon Mobil Corporation.


The New York Sun

© 2025 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  Create a free account

or
By continuing you agree to our Privacy Policy and Terms of Use