Oil/gas companies make public opposition to new hydrocarbons law

The Congress-backed law is a half-way house between the popular demand expressed by many social movements for state control and 50% royalties and the law presented by the Government which made very modest changes to the current situation which hugely benefits the oil/gas companies.

However, the Congress law with its call for an increase in revenues for the State and increased State control over Bolivia’s natural resources is too much for even the wealthy multinational energy companies. A body representing all the oil companies made over 30 objections to the new law. Not surprisingly, given the sheer amount of pressure on the Government to review the law, the companies’ objections have mirrored those made a few days ago by the Government to the Congress law.

The pressure on Senate to revise the law is huge, although some politicians have spoken out against the companies’ objections saying that the Senate must stand firm in the interests of the Bolivian people. Whether they can hold out against the opposition of both the companies and the international donor community remains to be seen.

If you haven’t sent a letter to British Gas or the British Government, please do. The law will be discussed and revised over the next few weeks, so the oil companies need to hear that there is international support for a just deal for the Bolivian people.