In this post I only want to report on the reactions of some of the companies directly affected by the announcement and the market’s reaction to the event itself:
§ Repsol (NYSE:REP).-
§ British Gas (LSS:BG).- Shares of BG Group, which holds three fields in Bolivia including the Margarita field, also opened lower this morning.
§ Pluspetrol Energy. - The company holds 6 fields, including the Madrejones camp, it’s more invested in the Peruvian Camisea project than in
§ Total (NYSE:TOT). –
§ Vintage Petroleum (A subsidiary of Occidental Petroleum Corporation NYSE: OXY). - It currently operates three fields, the Bolivian operations represent a marginal segment of its South American operation, and there was no release for the company regarding this issue. This is the only
§ Petrobras (NYSE: PBR). - Brazilian company Petrobras holds small but very public stake in
As far as the immediate reaction of the market, we can see that firms were quick to clarify their exposure in
It’s not clear how far this “nationalization” will really go; as far as I’m concerned, this is nothing but the long needed and awaited contract-renegotiation under a populist guise. Production is only being channeled through YPFB while administrative control of infrastructure remains on foreign control until negotiations start.
And judging by the text of the initial decree, the only asset that has truly changed hands, are the millions of Andina,
Tag: Bolivia,Bolivian oil,Repsol,Petrobras,Oxy,Evo Morales,Exxon,oil.