Bolivia nationalises BP aviation unit

LA PAZ (Reuters) – Bolivian leftist President Evo Morales told hundreds of supporters he nationalised the local unit of BP’s aviation division on Friday, further tightening state control over the energy industry.

At a May Day rally, Morales said he signed a decree to take over Air BP, a division of British oil major BP (BP.L). The poor Andean nation had been in talks with the company over a possible takeover.

“I want to ask the Bolivian armed forces along with (Bolivian state energy company) YPFB to gain control of Air BP, the multinational that sells jet fuel. With this decree Air BP is now nationalized,” Morales said in a speech outside the presidential palace in La Paz.

A BP spokesman in London said the company “had agreed a handover of our operations.”

“We were surprised by today’s takeover process. But we will continue to support the handover,” the spokesman said.

Reuters