Abstract

This case is about the nationalization of the oil and gas sector in Bolivia in May 2006. Bolivia had the second largest natural gas resources in South America after Venezuela and played a significant role in the regional oil and gas market. The case highlights the reasons for the government’s decision to take control of the country’s oil and gas energy resources. The case also discusses the impact of this decision on the Bolivian economy, foreign investment flows, and regional trade alliances.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the impact of government decisions on the business environment and foreign investment flows of a country
• Appreciate the importance of foreign investment in the economic development of a country
• Assess the impact of either nationalization or privatization on the economic development of a country.

Keywords

Bolivia, Oil and Gas Sector, Nationalization, Privatization, Petroleo Brasileiro SA, Yacimientos Petroliferos Fiscales Bolivianos, Total SA, Repsol-YPF, Energy Resources, Bolivian Gas War, Indigenous Groups, Referendum, Contracts, Hugo Chavez, Andean Community, European Union, European Commission, Regional Alliances, Globalization, Economic Reforms, Andean-Amazonian Capitalism, Jindal Steel and Power Limited