CARACAS: Venezuela's new economy minister warned yesterday the Opec nation could “nationalise” the multibillion dollar heavy crude projects in the Orinoco oil belt run by US and European companies if talks for the state to take a majority stake in the enterprises break down.
The projects are worth an estimated $33bn and believed to hold up to 235bn barrels of tar-like oil.
On Monday, as President Hugo Chavez broadened his nationalisation drive to the utilities sector, he also reinforced his offensive against companies developing the oil of the Orinoco Belt in eastern Venezuela, saying their projects had to become state property.
US Energy Secretary Sam Bodman said on Tuesday he was concerned by Chavez's statement because it could affect US majors such as Chevron Conoco Phillips and ExxonMobil.
Other foreign companies involved in the projects are France's Total SA, Norway's Statoil and Britain's BP.
Yesterday, in an interview with state television, Economy Minister Rodrigo Cabezas said Congress had debated brushing aside the negotiations and taking over the Orinoco projects if there is no progress in the talks to give the state control.
“We have talked about an instrument to nationalise the Orinoco oil belt if the ongoing negotiations ... with the four project-holders were going nowhere,” Cabezas said. – Reuters |
