Bolivia Enacts Hydrocarbons Law

Bolivia’s Congress enacted legislation that increases royalties on oil and gas production, requiring companies to renegotiate existing contracts. The law will add a 32 percent tax to existing 18 percent royalties. Foreign companies say the law will reduce investment and Britain’s BG Group threatened to take legal action if its contract is rescinded. Bolivian protestors are pressing for full nationalization of oil and gas deposits and others want a 50 percent royalty and the imposition of state-controlled prices.