Latin America Presses Foreign Oil Firms

Foreign oil firms have come under increasing pressure in Latin America as Honduras and Venezuela try to exert greater control over the industry, BBC World News reported today.

US oil companies have said they will stay in Honduras, despite the state saying it will temporarily seize control of oil storage containers.

The Honduran move, made on Friday, will affect firms such as Chevron and Esso.

The news comes as Venezuela refused to negotiate with foreign oil firms over its wider nationalisation plans.

Venezuela's President Hugo Chavez recently promised to nationalise the biggest phone and power companies and on Monday, oil minister Rafael Ramirez said "there was no possible negotiation" with foreign firms.

However, Mr Ramirez conceded that private firms could own minority shares in the Orinoco River basin oil projects, an area known for lucrative contracts.

Even so, Venezuela would retain "an effective majority control", he said.