Caribbean Net News: Petroleos Venezuela and Jamaica's Petroleum Corp form venture

CARACAS, Venezuela (Bloomberg): Petroleos de Venezuela SA, South America's largest oil company, has formed a joint venture with Jamaica's state oil company as part of Venezuela's PetroCaribe initiative.

Caracas-based Petroleos de Venezuela, in a statement Monday, said the venture with Petroleum Corp. of Jamaica will develop energy projects. Petroleos de Venezuela said it will also increase oil sales to Jamaica by 12 percent to 23,500 barrels a day from 21,000 barrels a day.

A decision whether to expand the capacity of Jamaica's sole refinery at Kingston to 50,000 barrels a day from its current 36,000 barrels a day will be made jointly in January, Petroleos de Venezuela said. Energy talks between the two companies took place during Venezuelan President Hugo Chavez's visit to Jamaica on Monday.

The PetroCaribe initiative offers the 13 members, including Dominica, Venezuelan petroleum products on preferential terms that eliminate third parties. Member countries may pay for oil in goods, and under subsidized financing. The project has been delayed by a lack of infrastructure in some member countries.

Other members of PetroCaribe include Cuba and the Dominican Republic. PetroCaribe will hold its third meeting September 8 in Caracas, Petroleos de Venezuela said.

Back...

Printable version