Venezulean President Hugo Chavez on Saturday steered his oil-rich country more towards the left by proclaiming that his government would nationalize all of Venezuela's energy and telecommunications sectors.
Chavez announced the plans to take over majority stakes in industries such as oil, electricity and telecom during his annual state of the nation address before Venezuela's parliaments. "We have decided to nationalize the whole Venezuelan energy and electricity sector, all of it, absolutely all," Chavez said, opening up what could be a battle between his government and the many foreign companies that operate in Venezuela.
Of particular note was Chavez's proclamation that Venezuela was close to being ready to take over the oil project run by foreign companies in the country's Orinoco Belt. Venezuela, an OPEC member, is the No. 4 oil exporter to the United States, and several American companies such as Chevron Corp., Exxon Mobil Corp. and ConocoPhillips run the projects (that) turn the Orinoco Belt's heavy crude into fuel oil.
Chavez, who holds strong anti-American sentiments, said the foreign firms could remain in Venezuela, but only as minority stakeholders in the government holdings. "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 goodbye," Chavez said in his address. |