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News from the Caribbean as of
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Venezuela to supply bulk of Guyana's oil needs
Thursday, January 25, 2007
CARACAS, Venezuela (AFP): Venezuela's energy ministry announced Wednesday the country would supply half of Guyana's oil needs after signing an energy accord with its neighbour.
The highly preferential oil pricing deal is the latest by Petrocaribe, an oil alliance launched by Venezuelan President Hugo Chavez in June 2005 to expand his nation's political clout in the region.
Under the terms, state-owned Petroleos de Venezuela SA (PDVSA) would supply 5,200 barrels of oil per day to Guyana, a former British colony with a population of 700,000.
Venezuela has also agreed to accept commodities, notably agricultural products, as payment and would loan Guyana up to 40 percent of the cost to buy its oil, at one percent interest, if petrol prices top 40 dollars - which they have already.
The fifth largest oil exporter in the world, Venezuela aims to distribute some 200,000 barrels per day through Petrocaribe, which boasts nine member states.
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