The presidents of Argentina, Brazil and Venezuela plan to meet their Bolivian opposite number this week to discuss concerns about Bolivia’s decision to seize foreign-owned gas fields and give companies 180 days to renegotiate their contracts or quit the country.

Meanwhile, the Spanish Government said that it was dispatching an emergency delegation of politicians and advisers to Bolivia.

Repsol, one of Spain's biggest energy companies, suffered a hit to its share price yesterday on news that all foreign gas reserves have been seized. Respol has one of the biggest exposures to the Bolivian market of all foreign companies.

The mounting international pressure came as Señor Morales, elected on a platform of nationalisation, defended his decision to place the military in charge of the country’s vast gas field installations. Bolivia has the second largest reserves in Latin America after Venezuela.

"There is no confiscation nor expropriation of company property," Señor Morales said. "Their installations will continue to be their installations. This nationalisation is of natural resources."

But analysts have given warning that the move will hit companies because it will effectively strip them of valuable gas reserves in the country and diminish their role to one of a service provider for the Bolivian Government, which has inherent political risks and potentially lower returns.

At present, Bolivia has $3.5 billion of foreign investment in its gas sector – investments that are now at risk.

Foreign investor fears of a new era of much reduced returns seemed to be justified in light of comments from the Bolivian Vice-President Alvaro Garcia Linera, who declared on national television: "Before the decree, operating in Bolivia was like winning a lottery because the profits were abusive."

He added that under new contracts, the state-run Yacimientos Petroliferos Bolivianos would be well positioned to make money. The state company will become the majority shareholder in the reformed gas operations.

But the tide of international opinion appeared to be rising against the move. Spain swiftly expressed its "profound worry", while the Brazilian President Luiz Inacio Lula da Silva held an emergency meeting with ministers and oil executives from the energy giant Petrobras, which is another dominant foreign player in Bolivia.

President Hugo Chavez of Venezuela confirmed the leadership summit with Señor Morales would take place "within 48 hours".

The US remained tight-lipped for now, stating it was closely monitoring the situation. The outgoing White House spokesman, Scott McClellan, told reporters: "We have not been able to determine if any official change has been made at this point and what impact that might have."

A number of British companies are also directly affected, including BP and BG Group. Reporting its results earlier today, BG said it was "carefully reviewing" developments and would be discussing the changes with the Bolivian government.

The British Government was not available for immediate comment on whether it will be raising the matter with Bolivia on behalf of its energy companies in the region.

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