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.

Chavez tried to quell those fears on Thursday. “I ask you to see the truth. Don’t let yourselves be terrorised. Be free,” he said, accusing some media outlets and governments of trying to demonise his efforts. “We are not going to copy the Soviet model nor the current model of socialism in Europe nor the Cuban model. We are going to create our own model,” Chavez said.

Chavez has said he will use his special decree powers, which will be in force for 18 months, to also nationalise the country’s biggest telecommunications company and the electricity and natural gas sectors. On Thursday, he said the takeover will include Electricidad de Caracas, which is controlled by US electricity company AES, and four other regional power companies that are privately run: ELEBOL in Bolivar state, ELEVAL in the Valencia city, CALIFE in Puerto Cabello, and ELECA on Margarita Island.