Bolivia Boosts Incentives for Foreign Oil Companies
Not sure what this means for relations among countries in South America. Thoughts?
http://www.nationofchange.org/bolivia-boosts-incentives-foreign-oil-companies-1335973845
Almost six years after the nationalization of gas and oil reserves in Bolivia, foreign companies maintain an active presence in the sector, and the government is now offering them greater incentives to increase oil production.
During the same week that President Cristina Fernández de Kirchner of Argentina announced the expropriation of 51 percent of shares in the oil company YPF, previously held by the Spanish corporation Repsol, the Bolivian government issued a decree that raised incentives for crude oil production from 10 dollars to 40 dollars a barrel.
Supreme Decree 1202 establishes that the Bolivian national treasury will issue tax credit notes in the amount of 30 dollars.
For each barrel (159 liters) of crude they produce, foreign oil companies will continue to receive 10 dollars in cash in addition to a credit note that can be used for tax payments.
