CARACAS, Venezuela -- President Hugo Chavez's government says it is seizing 14 natural gas compression plants as it moves forward with the takeover of private companies in Venezuela's oil industry.

Venezuela's state oil company has taken control of 75 oil contractors amid payment disputes and plunging world oil prices, using a law approved by the largely pro-Chavez National Assembly last month. Chavez's government now says it will proceed with more takeovers over the next five days, according to a statement from Venezuela's Information Ministry late Wednesday.

"We're advancing in recovering the control and ownership of all of these plants," Chavez said in a speech Wednesday, making no reference to compensation.

The law says nationalized companies could be paid with cash or bonds and the government has agreed to pay companies involved in some past takeovers.

Those affected include Houston-based gas processor and distributor Exterran Holdings Inc. The company said in a filing with the U.S. Securities and Exchange Commission on Tuesday that state- run Petroleos de Venezuela SA, or PDVSA, began taking over its operations that same day.

Exterran said it had already been affected through the seizure of three joint ventures in which it has minority stakes -- including SIMCO consortium, which injects water into oil fields to improve recovery, and two gas plants in eastern Venezuela owned by Williams Companies Inc., based in Tulsa.

But Tuesday's seizures represent the first takeover of Exterran's "wholly owned operations"-- which accounted for about 5 percent of the company's total revenues last year, the company said.

In April, Exterran said it was experiencing long delays in payments from PDVSA. Venezuela's state oil company has recently clashed with domestic and foreign service providers -- falling behind on billions of dollars in payments as it aims to cut costs by 40 percent.

PDVSA's unpaid invoices jumped 145 percent over 2007, to reach $13.9 billion in December, according to Venezuela's Energy Ministry.

These debts have prompted some foreign oil drillers to halt their Venezuela operations -- including Dallas, Texas-based Ensco International Inc., which stopped drilling its offshore rig in January, saying Venezuela owed it $35 million.

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Originally published by RACHEL JONES Associated Press.

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