Newswire: South America

[Brazil] -- Brazil strengthens state control over offshore oil reserves -- Xinhua
Brazil announced on Monday new oil exploration rules to increase state control over its recently discovered offshore oil reserves.

Under the plan, the state-owned oil and gas giant Petrobras will be the sole operator of the new oil reserves. It will also have a minimum 30-percent stake in all future projects in the pre-salt layer fields.

Brazil Tries to Maximize Offshore Oil Bonanza-- Latin America Herald Tribine
Brazilian President Lula revealed the government's plans to make Brazil one of the top 10 oil producers in the world and develop what he believes are the world's 9th largest oil reserves, but his announcement of increased state control and further equity sales shook markets, causing Petrobras to lose $7 billion in value in one day.

Petrobras Loses $7 Billion Value as Lula Seeks Stake -- Bloomberg
Brazilian President Luiz Inacio Lula da Silva’s plans for the development of the country’s offshore oil fields stripped Petroleo Brasileiro SA investors of $7 billion in a day.

The proposal, announced yesterday, may allow the state to boost its stake in the company and ensure most income from oil exploration “stays in the hands of our people,” Lula said at a press conference in Brasilia. Petrobras, as the Rio de Janeiro- based company is known, led the Bovespa stock index to the biggest drop in the Americas yesterday after the announcement.


[Venezuela] -- Chavez Says Venezuela Will Continue Oil Exports to U.S. -- Latin America Herald Tribine
Venezuelan President Hugo Chavez said that his country will continue exporting oil to the United States because it is in the Andean nation’s interest.

Chavez said in a statement published in the Lima daily El Comercio that “many people don’t know” that Venezuelan state oil giant PDVSA, through its Citgo subsidiary, has seven large refineries and more than 10,000 service stations on U.S. soil.

“Venezuela can’t take a decision against ourselves. We send the oil to our refineries and to our distribution systems in the United States,” he said.

Caracas Stock Market Up 3% for the Week -- Up 41% for the Year -- Latin America Herald Tribine
The Caracas Stock Index rose 3.16% for the week to close at 49,507 mostly on the back on the continued rise of Sivensa shares on continued optimism over the buyback of its shares to be considered at its shareholders meeting next week. Sivensa shares rose sharply, closing at Bs. 16.5 for a 37.5% rise.


[Peru] -- Two Wounded in Rebel Attack, Peruvian TV Reports -- Latin American Herald Tribine
At least two soldiers were wounded in an attack apparently mounted by Shining Path guerrillas Monday against a counterinsurgency base in central Peru’s Junin province, Canal N television reported.

The guerrillas opened fire around 3:30 a.m. on the Jose Olaya base in the strife-torn Valley of the Apurimac and Ene rivers, known as the VRAE region, Canal N said.


[Bolivia] -- Morales Named “World Hero of Mother Earth” by UN General Assembly-- Latin America Herald Tribine
The president of the United Nations General Assembly, Rev. Miguel D’Escoto Brockmann, on Saturday declared Bolivian President Evo Morales as “World Hero of Mother Earth” in a ceremony at the presidential palace in this capital.

With a medal and a parchment scroll, the General Assembly of the United Nations Organization named Morales “the maximum exponent and paradigm of love for Mother Earth” in the resolution for his decoration that was read during the ceremony.

Bolivia Cries Foul Over Peru Plans for Drilling in Titicaca -- Latin America Herald Tribine
Bolivian President Evo Morales’ government will present a formal complaint to Peru over its plans to drill for oil in Lake Titicaca without consulting La Paz, state-run news agency ABI reported.

Hydrocarbons Minister Oscar Coca sent Bolivia’s Foreign Ministry a note requesting that a formal complaint be made since the body of water straddles the border between the two nations, ABI said.

“Since Lake Titicaca is a bi-national area, it’s obvious that there can’t be unilateral actions” and therefore the matter requires a diplomatic solution, Coca said.


[Cuba] -- Cuba endeavors to raise farm output amid economic downturn -- Xinhua
Pressured by a global economic crisis and a stern U.S. economic blockade that has lasted nearly half a century, Cuba is actively seeking ways to boost its agricultural production.

The measures include turning over land close to cities to residents to plow, replacing fuel-burning tractors with oxen, redistributing fallow land and raising the prices of state-regulated farm products.

Bolivia... still trying to regain lost land from the War of the Pacific (1879-1883)

Don't be ashamed if you're asking yourself, "what the heck is the War of the Pacific?" Well don't feel too bad, the majority of people who even claim to be history war buffs are largely ignorant to the fact that there have even been regional wars in South America.

The War of the Pacific (1879-1883) is one of the major wars waged between South American nations. The war escalated over territory disputes along the old boarder region of Peru, Bolivia and Chile.

Naval Battle of Iquique: the Esmeralda versus the Huáscar

If you are interested, check out the surprisingly comprehensive Wikipedia page on the war.

Basically I'll break down the history of the war as follows. Just keep in mind I am a Peruvian-American, so I may be a little bias and my quick synopsis may be full of typical South American cliche's...

Once upon a time, in a land to the South, there was this barren and skinny country known as Chile. Despite having virtually no natural resources, Chile was working its heart out to make something of itself in the tumultuous reality of the late 19th century.

Bolivia on the other hand, was and still is, a country with a abundant supply of natural resources. Sadly, much like how the Spanish squandered all the wealth they stole from Peru and Bolivia, the left over remnants of the conquistadors were running the country as if they were still living the life of a aristocrat in Spain back in the 17th century.

When it came time to work out a plan for doing business with Chilean ventures edging up Bolivia's old coastal province of Antofagasta, Bolivia decided to create a very unfair business environment which essentially leached from the profits of Chile's new enterprises.

Economically speaking, Peru at the time was stuck somewhere in between Chile and Bolivia . Like Bolivia, Peru has a great deal of natural resource wealth. The difference between the two was that thanks to commerce and a friendlier terrain, Peru had a bit more than Bolivia going on in terms of entrepreneurial spirit.

However, at the time Peruvians thought their shit smelled better than the rest of Latin America because the country had been Spain's hub when it owned much of South America. Peru being a pompous country (with nothing to back it up), decided to support Bolivia when the arguing with Chile turned violent.

Chile was the best prepared for war of the three. Chile's military had recently inherited some nice Prussian (German) soldiers from Europe who knew what they where doing, compared with the now out dated left-overs of Peru and Bolivia's Army and Navy from colonial times. Furthermore, when considering the way things escalated, Chile had the most incentive to expand its boarders.

When war broke out, Chile spanked Peru and Bolivia, over-powering their armies with ease.

Chile even had the guts to March its army through Peru's capital, Lima. This event is remembered much like Hitler's escapade in Paris with the Nazi Army. EMBARRASSING to think about as a Peruvian to this day, but no less well deserved historically speaking.

Chilean Army marching on Lima in January, 1881

Once the war was over, Chile had claimed two provinces of Peru and one of Bolivia's. Flash forward a few years and these regions are now Chile's prize possessions. Lucky for the Chileans, the provinces they won (or took away depending on your perspective) are loaded with valuable base metals like copper, zinc and gold.

Here's a map that shows the territories Chile claimed from Peru and Bolivia. Yes Peruvians remain bitter about this mis-hap in their history against their southern rival Chile. Bolivia as you can see lost it's one exit to the Pacific, creating a land-locked country.

A little unfair yes... Especially for a country with some of the most treacherous terrain in South America and one which remains one of the poorest in the region to this day. As history shows, this is sadly how the cookie crumbles and I seriously think the US will hand Texas back to the Mexican's before Chile cedes any land it won from Bolivia over 100 years ago back.

The new map after the war

Now that you have some context, check out this article which describes how President Evo Morales of Bolivia is once again trying to get the land it lost to Chile back.

Trouble brewing in Bolivia... Family of Morales critic 'attacked' -- Reuters Video

Mar. 8 - A former Bolivian vice president and known opponent of President Evo Morales said a government lynch-mob tried to burn down his house while his family were still inside.

Helen Long of Reuters reports.

If you'd like to read more about this story, check out this article from the Latin American Herald

LA PAZ – The former vice president of Bolivia and opposition leader Victor Hugo Cardenas complained on Saturday that a “government-party mob” attacked his house in a community on the Bolivian altiplano and fears for the life of his wife and three children who were staying there.

Cardenas, an intellectual Aymara who was vice president during the first government of Gonzalo Sanchez de Lozada (1993-1997), told the media that peasant followers of President Evo Morales occupied at noon his house near Lake Titicaca.

Bolivians back Morales Charter - Reuters

Jan 26 - Bolivian President Evo Morales appears before a crowd of supporters to claim victory in a controversial election that grants him the right to run for re-election

Bolivian voters approved a new constitution to give the poor indigenous majority more power, let socialist President Evo Morales run for re-election and hand him even tighter control over the economy.

Aymara, Quechua, Guarani and other indigenous groups who suffered centuries of discrimination in South America's poorest country largely backed the new constitution and exit polls showed it was approved with around 60 percent support.

Penny Tweedie reports.

Bolivia nationalizes one of the last remaining foreign owned natural gas fields

Bolivia's President Evo Morales, on Friday nationalized one of the last remaining gas fields of which a foreign entity was the still the major share holder. Standing alongside his supporters, military and thousands of indigenous leaders Morales explained his "regret that some energy companies do not respect Bolivian laws."

President Evo Morales

The Carrasco gas field is located in the central province of Cochabamba, which by most accounts is Bolivia's wealthiest. Prior to nationalization, the Chaco gas company controlled the production from this field.

British Petroleum (BP) owns 60% of Pan American Energy which in turn owned until yesterday, 51% of Chaco. The remaining 49% was already in Bolivian control... by the country's state-owned petrol company, Yacimientos Petrolíferos Fiscales Bolivianos YPFB which owned the remaining 49%.

Chaco, which operates about a dozen gas fields in Bolivia recently announced plans that it would invest $64 million to increase gas production in the country. Despite the good will, Hydrocarbons Minister Saul Avalos, explained the government was not able to reach an agreement with Pan American Energy on how to arrange for majority control to pass to YPFB.

There are interesting developments from the Andean nation. A mere two days before the referendum on the new constitution President Morales has proposed.

South South Cooperation in focus: Venezuela and Bolivia: energy joint venture

Petroandina, a joint enterprise formed by the Bolivian and Venezuelan state energy companies, plans to invest $883 million to finance oil and natural gas exploration and production in Bolivia, a top official said.

Energy Minister Carlos Villegas announced the figure Tuesday during a press conference to discuss Petroandina's operating contracts, which the Bolivian Congress is set to vote on shortly.

According to Villegas, Petroandina will invest $242.2 million in the western Andean province of La Paz and another $646.1 million in central and southern Bolivia...................

Click here to access the full article from Rigzone