Bolivia

Bolivia is privatizing its public industries in an innovative way, selling a controlling 50-percent share of each public company to a single buyer who provides the company with capital for expanding its productive capacity. The remaining 50 percent share is to be deposited in a pension fund for all Bolivians {see Endnote 83}. Bolivia is also attempting to pass a new hydrocarbon law that will attract foreign investment.

However, plans to privatize the state oil company Yacimientos Petrolifieros Fiscales Bolivianos (YPFB) have been frustrated by opposition from Bolivia's confederation of workers {see Endnote 84}. The intent is to divide YPFB into two upstream companies, two downstream companies, and one natural gas transmission company before capitalizing the resulting companies {see Endnote 85}. The financial and production requirements to qualify to bid for one of the companies resulting from the division of YPFB ostensibly exclude the private Bolivian petroleum companies, causing them to join the labor unions in opposing the privatization process {see Endnote 86}. Chevron is negotiating to fund a seismic program on its share of an exploration block {see Endnote 87}. Enron and YPFB have a $400-million joint venture to construct the 350-mile Bolivian portion of the Bolivia-Brazil natural gas pipeline {see Endnote 88}. Exxon completed seismic studies {see Endnote 89}. Mobil has an interest in a production block and is negotiating concessions for two adjoining tracts {see Endnote 90}. Texaco and Mobil are members of a consortium with an exploration and development concession {see Endnote 91}.