The Government of Venezuela's embattled President Hugo Chavez has sacked several rebel oil executives in an attempt to break a general strike that has crippled the country's oil industry.

Venezuela is currently like someone who has been stabbed in the heart, but is still alive Venezuelan President Hugo Chavez

The Planning Minister, Felipe Perez, said the dismissal of the four top executives of the state oil company, PDVSA, was aimed at restoring the normality in the oil sector.

The move came shortly after President Chavez had said that oil production and distribution in the world's fifth-biggest producer had restarted.

But strike leaders denied the president's claim, saying the blockade was firm in refineries and ports. They also pledged to continue the strike - now in its 11th day - until Mr Chavez resigned.

There is no [oil] production. The refineries are paralyzed Juan Fernandez, sacked oil executive

Talks between the government and the opposition - which wants a date for a referendum on whether Mr Chavez should continue in power - have so far failed to break the deadlock.

'War situation'

President Chavez described the PDVSA rebel executives as "subversives wearing ties", as the government vowed to take tough action against the strikers.

Troops are guarding petrol stations

"We are in a war situation, because we are being attacked, sabotaged in our oil industry," Mr Perez said.

The PDVSA's director, Ali Rodriguez - who is said to have remained loyal to Mr Chavez - said Venezuela had enough gasoline to supply the country for a long time and would even import fuel should the situation worsen.

Mr Chavez said the government was making progress in breaking the blockade, saying that 350,000 barrels were being loaded onto a tanker to be shipped to the US.

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Click above to see Venezuela's oil export terminals

But it was unclear how the tanker would leave the port, as most tugboat operators had joined the strike.

"There is no [oil] production. The refineries are paralysed," one PDVSA's sacked oil executives, Juan Fernandez, was quoted as saying by the Associated Press news agency.

On Wednesday, the Organisation of American States (OSA) - mediating between the two sides - said there had been "serious discussion" about a proposal for a constitutional amendment that would allow early elections.

"We can't say we are close to an agreement," OSA's Secretary General Cesar Gaviria said.

He also expressed concern that violence could erupt before an accord is reached.

The turmoil in Venezuela was also on the agenda of energy ministers from the oil producing cartel, Opec, at their meeting in Vienna.