Bolivian President Evo Morales said on Wednesday the nationalization of the natural gas sector was not confiscation or expropriation of foreign companies assets.

"This is a nationalization of natural resources. The facilities remain to be the property of the companies," Morales told local television Telesur in La Paz.

Morales highlighted the profits guaranteed for the foreign companies.

"We have calculated that even with 10 percent, the companies can still make profit, which means we are not abusing them," he said.

The Bolivian president signed a decree on Monday, ordering all foreign companies to sign new operation contracts within six months or quit the country.

Under the new contracts, foreign companies will remain as operators, but no longer in charge of production, while Bolivia's state-owned firms become the majority shareholder.

The nationalization decree will boost treasury income by 400 million U.S. dollars a year, according to Morales.

Meanwhile, Jorge Alvarado, head of YPFB, told local radio Radioprogrammas de Peru that his company would be ready to go to international courts to fight lawsuits filed by any company.

"We have no fear of going to international tribunals to defend our interests," he said.

Alvarado urged the foreign companies to renegotiate their contracts so that they could "clear up their doubts and defend their interests."

"We are not going to expel the companies. They will continue working with their own staff and with our own. Today is the third day of nationalization and the work has continued exactly as before," he said.

Source: Xinhua