Thomko Petro Chemical Blog

Big oil could face pressure if Bolivia, Venezuela, and others take more control of their fields. 

Major oil companies, facing declining output from mature fields, have been finding it difficult to increase oil and natural-gas production for some time.

That task could become even trickier as countries such as Nigeria, Venezuela, Bolivia, and Russia aim to take more control over their own production.

According to news reports, Evo Morales, the president of Bolivia, told foreign oil companies on Monday they have six months to either renegotiate their contracts or leave the country. He reportedly informed the companies of this, as he ordered them to remit all natural gas and oil sales to a state-owned company. More on his speech & details of agreement with U.S. oil companies later

Bolivia's move follows Venezuela's, where President Hugo Chavez threatened to nationalize the Orinoco River Basin, which holds an estimated 235 billion barrels of oil. Companies that do business there include BP, Chevron, ConocoPhillips, ExxonMobil, and Total. 

Venezuela passed a new hydrocarbons law, which increased royalties paid by private companies to between 20% and 30% from between 1% and 17%, and guaranteed that the PDVSA own a majority interest in any new projects. The law also changed the structure of future foreign investment to joint ventures from strategic associations.

Peru's nationalist party leader Ollanta Humala has been reported as saying he intends to nationalize the country's oil and gas industry if he wins a runoff election.

According to Statfor, a global intelligence firm, Ecuador is moving to emulate Venezuela's oil policies.

In Nigeria, a militant group is seeking to reap more money from oil and gas projects in the West African country and has kidnapped oil workers and shut down operations in pursuit of that goal. There are 18 foreign oil companies operating there.

Source: Business Week Online