New Delhi, Jan. 11 -- New Jersey has long wanted Petty's Island, a little known 300-acre island in the Delaware River off Pennsauken, which comes with a grand vista of Philadelphia. The island's size and its scenic views have made it attractive as a possible location for parks, open green areas, and public recreation.

The Petty's island, however, has for decades been controlled by the South American nation Venezuela through Citgo Petroleum Corp., an arm of the country's national oil company.

This ownership may soon change hands as recent international events and a court ruling now appear to have cleared the way for investor and conservative donor Paul Singer's Elliott Investment Management to take over the island, the Philadelphia Inqui...