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CARACAS - Venezuelan President Hugo Chavez said today the country's entire energy sector had to be nationalised, reinforcing his socialist revolution and possibly giving himself more targets for state take-over.
But he said he would permit foreign firms to hold minority stakes in energy deals.
The anti-US leader, in power since 1999, this week announced he would nationalise power utilities and the country's biggest telecommunications firm, confirming his status as the catalyst of Latin America's swing to the left.
"We have decided to nationalise the whole Venezuelan energy and electricity sector, all of it, absolutely all," Chavez said in his annual state of the nation address to parliament, potentially opening up more projects for state acquisition in the No. 4 crude exporter to the United States.
Chavez's growing control of Venezuela's economy is partnered by his political influence. After the opposition boycotted elections, he has 100-per cent support in parliament and dominates the judiciary.
The president was reinaugurated this week for a term that runs through 2013, and has said only his supporters can work in the army and huge oil industry. He uses his presidency to spar with Washington, which he accuses of bloodthirsty imperialism.
Chavez is a close ally of Cuba and Iran, whose President Mahmoud Ahmadinejad was visiting Venezuela today.
Chavez has already pursued oil and gas projects and power utilities but today left no leeway for a private company to hold a majority in operations anywhere in the energy sphere.
It was not immediately clear whether his pronouncement on nationalising the whole sector was a precursor to moves against specific projects or companies.
Venezuela will have to judge how closely private firms must be connected to the country's oilfields, refineries, pipelines, petrol stations and coal mines to count as targets for nationalisation.
Huge oil service companies such as Halliburton and Schlumberger operate in Venezuela, but Chavez gave no indication whether deals involving such businesses were now in his sights.
In his address to parliament, Chavez also said Venezuela was "almost ready" to take over the foreign-run oil projects of the Orinoco Belt, which produce about 600,000 barrels per day.
Those projects, which turn tarry, heavy crude into fuel, are run by foreign heavyweights such as Chevron, Conoco Phillips, ExxonMobil, Statoil, and BP.
Chavez confirmed such firms could stay on as minority stakeholders after the state had acquired 51-per cent.
"If someone wants to stay on as our partner, then the door is open but if he does not want to stay as our minority partner then hand me the field and good bye," he said.
Despite his conviction that Caracas was on the verge of taking over these projects, the country has faced a long battle in wresting control away from the foreign firms.
A senior Venezuelan oil official last month acknowledged that the Caribbean state could face hundreds of millions of dollars in fines if it takes over the projects, because of financing agreements with international banks.
- REUTERS
