Slow start for Venezuela's oil initiative
in the Caribbean
AP
SAN
JUAN, Puerto Rico
Petroleumworldtt.com
07 09 06
One
year after 13 Caribbean countries signed a deal
with Venezuelan President Hugo Chavez to buy oil
under preferential terms, a majority of them have
not received a drop of fuel, while those that have
are still paying high prices at the pump.
Cash-strapped Caribbean countries
have welcomed the pact known as Petrocaribe as a
way to counter soaring oil prices. But eight nations
say they haven't gotten fuel shipments yet, largely
because they're figuring out how to handle them.
The programme has gotten bogged
down because many governments don't have state-owned
docking or storage facilities, or the know-how of
running an oil business - a task they previously
left to private companies.
While Chavez's critics say he is
using "oil diplomacy" to build anti-US
political alliances, many Caribbean leaders say
they believe the programme will be genuinely helpful
and are determined to take advantage of it.
"We're charting uncharted waters
here. It has to be done right," said Earl Bousquet,
a St Lucia government spokesman. "You don't
want to go into an agreement and then you have the
Venezuelans knocking on your door saying, 'Well
listen, we have all this oil, where are you going
to put it? And, how are you going to get it from
Antigua to St. Vincent?"'
Under the Petrocaribe plan signed
last June 29, countries pay market price for Venezuelan
fuel but are only required to hand over part of
the cost and can finance the rest over 25 years
at low interest.
Jamaica currently consumes 21,000
barrels a day of Venezuelan oil. Energy minister,
Phillip Paulwell left the island last weekend to
continue negotiations over loan facilities through
the Petrocaribe agreement, as well as, seek terms
to import an additional 2,500 barrels a day of Venezuelan
oil to aid the ailing national airline, Air Jamaica.
AP/ Sunday, July 09, 2006
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©2006 AP. All Rights Reserved.
