• 4 minutes Get First Access To The Oilprice App!
  • 7 minutes Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 1 hour *Happy Dance* ... U.S. Shale Oil Slowdown
  • 6 hours Oceans "Under Fire" Of Plastic Trash
  • 2 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 16 mins Making Fun of EV Owners: ICE-ing Trend?
  • 2 hours Is Natural Gas Renewable? I say yes it is.
  • 22 hours How Is Greenland Dealing With Climate Change?
  • 9 hours Algorithms Taking Over Oil Fields
  • 11 hours Europe Slipping into Recession?
  • 17 hours Socialists want to exorcise the O&G demon by 2030
  • 23 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 16 hours Nuclear Power Can Be Green – But At A Price
  • 13 hours UK, Stay in EU, Says Tusk
  • 6 hours Orphan Wells

INVESTOR WARNING: Bolivia Nationalizes Airport Management Company

Bottom line: Evo Morales’ expropriation of Servicios de Aeropuertos Bolivianos SA (SABSA)--a subsidiary of the Spanish businesses Abertis and Aena--is another warning for foreign investors in Bolivia. SABSA managed the country’s three largest airports: El Alto in La Paz, Viru-Viru in Santa Cruz, and Wilsterman in Cochabamba. Morales said the Spanish companies had committed to a $26 million investment but had only invested $5.6 million.

Analysis: This was not his first, and will not be Evo Morales’ last nationalization. In early January, the Bolivian army seized the property of four business units belonging to Spain’s largest utility, Iberdrola SA (BE.MC), to nationalize it. This follows the expropriation of Spain’s Repsol (REP.MC) last year. Though Morales’ nationalization of the natural gas industry impacted Petrobras, generally his targets are U.S. or European-owned business. Morales’ nationalization plan also includes telecommunications and water. So far, 15 companies have been nationalized since Morales launched the campaign in 2006. In addition to Repsol, Morales has renegotiated contracts with almost a dozen hydrocarbon companies, including Petrobras, Total and BG.

Recommendation: Any foreign business operating in Bolivia that encounters problems working under the strict mandates of the Bolivian government should have a back-up plan, an exit strategy, and an attorney ready to pursue compensation.

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News