The Venezuelan government will take majority control of oil projects in the Orinoco River basin by May 1 and any foreign oil company that resists can leave, President Hugo Chavez said on Thursday as he elaborated on his sweeping nationalisation plans.

Chavez told a news conference that his government is “not posing any conflict” to oil companies British Petroleum, Exxon Mobil, Chevron, ConocoPhillips, Total SA and Statoil ASA that are upgrading heavy oil in the Orinoco.

Chavez, who a day earlier was given power by congress to issue laws by decree in energy and other areas, said he was ready to sign a decree for the nationalisation of the four Orinoco projects by May 1. He said that state oil company Petroleos de Venezuela SA, would take a stake of “no less than 60 per cent.”

He also said that 3,000 Venezuelan employees in the Sincor project—jointly owned by France’s Total, Norway’s Statoil and PDVSA — would become PDVSA employees.

“I’m sure that they’re going to accept this because we are going to continue being partners. Now, if they aren’t in agreement, they are totally free to leave,” he said.

When private companies producing oil elsewhere in the country submitted to state-controlled joint ventures last year, few resisted because they were reluctant to abandon Venezuela, which has the largest oil deposits outside of the Middle East.

But Chavez’s increasing intervention in the economy has rattled more risk-averse sectors and chilled investment among those who fear a radical turn to his so-called socialist revolution. Critics say that as he begins a fresh six-year term, Chavez is taking steps reminiscent of how Fidel Castro monopolised leadership years ago in Cuba.

... contd.