Search terms: Bolivia
Including: Corporations; Limited Liability Company
The Commerce Registry must offer the administration of its main functions to a private entity by way of public bidding in a concession process. However, the registry will maintain the right to impose sanctions upon any person or entity that engages in commercial activities without registration.
This update discusses partially government-owned entities, which are considered to be entities organized under private law. Their formation, incorporation and directorship are reviewed.
The Commerce Registry regulates and guarantees the exercise of commerce under the supervision of the Ministry of Economic Development.
The Law of the System of Sectorial Regulation governs mergers between companies in industries such as hydrocarbons, telecommunications, electricity and transportation. The relevant industries must consult the appropriate sectorial superintendency before any merger agreement.
Including: Issues; Authorities and Institutions.
In 2006 Bolivia and Venezuela executed an agreement for cooperation in the energy sector which led to the incorporation of a mixed economy company between two state-owned oil companies. The new company's purpose was to develop exploration and exploitation activities in Bolivia's hydrocarbon sector.
Law 3058, introduced in 2005, provides for the ownership of hydrocarbons at the wellhead to be brought under state ownership and control. Further decrees have helped to determine the degree of control which Yacimientos Petrolíferos Fiscales Bolivianos, the state-owned oil company, exercises and plans to acquire in the sector.
Following on from the nationalization of the Bolivian hydrocarbons industry, the government has executed an agreement with the Brazilian government increasing the price of gas exported to Cuiaba in Mato Grosso, Brazil. However, the price increase applies to only 4% of the total gas exported by Bolivia to Brazil.
The 120-day period for oil and gas companies engaged in the exploration, exploitation and production of hydrocarbons to cease activities under the joint venture contracts executed under the now-superseded Law 1689/1996 and to comply with the new contractual framework has now ended.
Although Bolivia has the second largest natural gas reserves in Latin America, the country currently sells natural gas to only two countries: Brazil and Argentina. At the same time as taking care of this existing market, the government also needs to consider ways in which it can expand the market to new clients.
Despite hope in the private sector that the government might assume only a certain degree of control over the hydrocarbons industry, new Supreme Decree 28701 on the nationalization of hydrocarbons has awarded the state complete control over the industry. Private companies have 180 days to comply with the decree's requirements or cease operations in Bolivia.