Venezuela Ends Oil Negotiations

By DOW JONES/THE ASSOCIATED PRESS

CARACAS, Venezuela, Jan. 15 — Venezuela will end negotiations with foreign oil companies over how it will take a majority control of their operations along the Orinoco River, the country’s oil minister, Rafael Ramírez, said on Monday.

Mr. Ramírez said that “there’s no possible negotiation” with the foreign companies, but he said that private companies would be allowed to own minority stakes in lucrative oil projects in the Orinoco River basin.

“Every case will be different,” Mr. Ramírez said. “We will have an effective majority control.”

The government negotiated last year with the companies about its plans to take majority control of oil operations in the country, but no agreements were reached.

In a speech to Congress last week, President Hugo Chávez said the private companies — BP, Exxon Mobil, Chevron, ConocoPhillips, Total and Statoil — would be given the option to stay on as minority partners.

Mr. Chávez also announced plans to nationalize companies within Venezuela’s telecommunications, electricity and natural gas industries.

The government has already taken majority ownership of Venezuelan oil-producing operations outside the Orinoco region through joint ventures controlled by the state oil company.