The state oil company Petroleos de Venezuela (PDVSA) had finalized the acquisition of controlling stakes in 32 oil fields, which were handed to private companies by previous governments, Rafael Ramirez, head of PDVSA, told local press on Monday.

Ramirez, who is also oil and energy minister, said the measure reversed 32 agreements signed between 1990 and 1997, which had been declared illegal by a 2001 hydrocarbons law.

By recovering the fields, the government had ended an "illegal set-up," under which Venezuela had forgone royalties, Ramirez said.

The 2001 legislation forces private companies engaged in oil extraction to convert their businesses into joint ventures, in which the government has a controlling stake.

The government had instructed the oil companies to sign with the PDVSA a transitional agreement before Dec. 31, 2005, and to start operations according to the new deal in 2006.

Venezuela will save a minimum of 3 billion U.S. dollars under the terms of the deal, because the oil companies used to sell 500,000 barrels per day (bpd) to the government at international prices rather than at cost prices.

The 32 agreements that had been nullified represented 15.6 percent of Venezuela's national production of 3.2 million bpd of crude oil.

Venezuela is the world's fifth largest oil exporter.

Source: Xinhua