start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)

I say things on Twitter

10/16/08

Bolivia does good business with foreign oil company: Shockingly the story is missed by English media

Evo shows his true colors

Yesterday, the gov't of Bolivia (via its state-owned oil company YPFB) and Spain's Repsol signed off on its deal and fomally created their joint venture company known as YPFB-Andina. The JV company is 51% Bolivia and 49% Repsol. The ceremony and related comments were missed almost entirely by the English speaking media.....after all, the last thing anyone needs to hear about Bolivia is their willingness to work with foreign investors and come to fair agreements that suit everybody.

Make no mistake; this deal is a big one for Bolivia because the JV controls 40% of all hydrocarbons production in the state. It is rightly being fanfared in Bolivia today as an important step forward for both future fiscal revenues and wider stability. However, don't expect Bolivia to come up on your mainstream news media until Evo says "Yankees go home" again.

Oh yeah, nearly forgot: I say "almost" missed the story, as AP manged to scrawl ten lines on the event. Here is their report in its entirety:

Bolivia takes control of Repsol local subsidiary

LA PAZ, Bolivia: Bolivia's state energy company has completed its takeover of the local operations of Spanish company Repsol.

Repsol YPF and the government signed an agreement Wednesday making Bolivia's YPFB the majority stakeholder in Repsol subsidiary Andina, ending months of negotiations. The company will be known as YPFB Andina SA.

President Evo Morales said at the signing ceremony that Bolivia needs "partners who will be respected by the state as long as they respect (the country's) sovereignty."

Repsol executive Nemesio Fernandez promised investment but did not give details.

Morales ordered Bolivia's hydrocarbons industry nationalized in 2006. The government is still negotiating with three other foreign companies over compensation.

As you might expect, even this single note on the agreement between Repsol and Bolivia is missing facts and slanted its own way...I mean, I just love the way the title implies Bolivia is stealing something from the poor, hard done by Spaniards who in turn are al vague and "we dunno what to do now" about the new JV. Just another piece of crap reporting on Bolivia to add to the pile, folks. So if you're versed in Spanish take a look at this note that gives plenty more, including comments from the Repsol side that "....the new agreement between the shareholders will achieve growth for the company and ....the Spanish/Argentine company respects the rules of every country (in which it operates)."

Respect Bolivia? Ahhhh!...NOW i understand why the English press didn't bother covering this story!