TRENTON, N.J. -- Venezuela's U.S.-based oil company is donating an island in the Delaware River to the state of New Jersey to be turned into a wildlife sanctuary.

Alejandro Granado, president of Houston, Texas-based Citgo Petroleum Corp., said the donation of Petty's Island shows a commitment by President Hugo Chavez's government to environmental conservation.

New Jersey Gov. Jon Corzine welcomed the move in a statement Wednesday, saying "Earth Day is a fitting time to consummate the donation of this special place."

New Jersey's Natural Lands Trust board agreed in January to accept Citgo's offer of the island, located between Pennsauken, New Jersey, and Philadelphia, Pennsylvania. It previously was used for fuel storage.

Chavez announced the donation on Saturday at a summit in Trinidad and Tobago while saying he hopes for better relations with the United States.

Despite its industrial past, the island is home to nesting bald eagles and hosts migrating birds and waterfowl.

Corzine praised Citgo's decision to sign an agreement with the state to complete a cleanup of past contamination, the governor's office said in a statement.

It said Citgo agreed to create a $2 million fund for the Natural Lands Trust to manage the nearly 400-acre island, and another $1 million fund to help set up an educational and cultural center.

It also said Citgo is to begin removing storage tanks from the island in the coming months.