Bolivian President Evo Morales announced on Monday that his government would nationalize the oil and natural gas industries.

So far in history, Bolivia has nationalized its energy resources for three times.

In 1937, the military government of Colonel David Toro expropriated the U.S. Standard Oil Company, paying it some 1.7 million U.S. dollars in compensation, and founded Yacimientos Petroliferos Fiscales Bolivianos (YPFB).

Later, the 1969-1970 military regime of Alfredo Ovando divested Gulf Oil of the United States with a 78-million-dollar payment, giving YPFB control of 3.6 billion barrels of petrol.

Evo Morales made the third divestment on Monday -- the International Labor Day and his 100th day in office as Bolivian President, giving petrol companies 180 days to sign new contracts with the state, under which they would remain as operators, be paid by the state for their work, but not have control of the fuels extracted.

A typical contract would give 82 percent of production profits to the YPFB and 18 percent to foreign companies doing the work.

Most Bolivians were happy when they learned that Morales had sent in the army to enforce the decree, which was announced on Monday with Morales's speech saying that "the looting by foreign companies of our natural resources is now over."

At the same ceremony in Yacuiba, which has the bulk of the nation's gas resources, Morales hinted that he might do the same with Bolivia's other natural resources, which include forests and mines.

Bolivia has about 49 trillion cubic feet of gas reserves, next only to Venezuela in South America, which has around 150 trillion cubic feet. Bolivia's gas exports mainly go to Argentina and Brazil.

Source: Xinhua