Exxon-Mobil  plans to hand operations of a multibillion-dollar oil project to the Venezuelan state before a May 1 deadline imposed by President Hugo Chavez.

Chavez this week signed a decree for the government to take a majority stake in four crude projects in the Orinoco basin by May 1 as part of a nationalization drive toward Cuba-inspired socialism.

"Exxon is preparing to hand over operations by May 1, in line with Chavez's instruction that after May 1 Exxon is not the operator of Cerro Negro," said an industry source.

Venezuela provides about 11% of US oil imports.

Hugo Chavez, an ally of Fidel Castro, ordered the government to accelerate the confiscation of the Orinoco projects during a broad nationalization push.