Caracas, Venezuela – President Hugo Chavez said Thursday that soldiers will accompany government officials when they take over oil projects in the Orinoco River basin in May.
“On May 1 we are going to take control of the oil fields,” Chavez said. “I’m sure no transnational company is going to draw a shotgun, but we will go with the armed forces and the people.”
Chavez has decreed that Petroleos de Venezuela SA will take a minimum 60 percent stake in four heavy-oil projects in the region and invited the six private companies operating there to stay on as minority partners.
As older fields elsewhere go into decline, development of the Orinoco is seen as key to Venezuela’s future production.
Negotiations over the takeover have yet to yield an agreement.
