Petrocaribe

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Petrocaribe S.A.
TypePublic
IndustryOil
FoundedJune, 2005
Headquarters?
ProductsOil
RevenueIncrease USD/$ ? billion (2006)
Operating incomeIncrease USD/$ ? billion (2006)
Net incomeDecrease USD/$ ? billion (2006)
ParentPDVSA
Websitewww.petrocaribe.org
 
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Petrocaribe S.A.
TypePublic
IndustryOil
FoundedJune, 2005
Headquarters?
ProductsOil
RevenueIncrease USD/$ ? billion (2006)
Operating incomeIncrease USD/$ ? billion (2006)
Net incomeDecrease USD/$ ? billion (2006)
ParentPDVSA
Websitewww.petrocaribe.org
  Venezuela
  Petrocaribe members and CARICOM members
  Petrocaribe members not part of CARICOM
  CARICOM members not part of Petrocaribe

Petrocaribe S. A. is an oil alliance of many Caribbean states with Venezuela to purchase oil on conditions of preferential payment. The alliance was launched on 29 June, 2005 in Puerto La Cruz, Venezuela.

Contents

Treaty details

The agreement was initiated wiuth the aim of having solidarity with other countries in accordance with ALBA. The payment system allows for purchase of oil on market value for 5%-50% up front with a grace period of one to two years; the remainder can be paid through a 17-25 year financing agreement with 1% interest if oil prices are above US$40 per barrel. The agreement builds on payment terms from the San Jose Agreement and the Caracas Energy Accord.[1] Energy and Petroleum Minister and President of PDVSA Rafael Ramírez said of the deal that it seeks to cut out the middleman in such transactions: "We're not talking about discounts...We're talking about financial facilities, direct deliveries of products, [and] infrastructure."[2]

Membership

There are a total of 18 members, plus Venezuela; 12 of the members are from the 15 member CARICOM (excluding, Barbados, Montserrat and Trinidad and Tobago). At the first summit, 14 countries joined the alliance. These were: Antigua and Barbuda, the Bahamas, Belize, Cuba, Dominica, Dominican Republic, Grenada, Guyana, Jamaica, St Lucia, St Kitts and Nevis, Saint Vincent and the Grenadines, Suriname and Venezuela. At the third summit, Haití and Nicaragua joined the union.[1] Guatemala joined in July 2008.[3][dead link]

Haiti had not been initially invited to the talks, since Venezuela did not recognize its then post-Jean-Bertrand Aristide government. The country finally joined the alliance in April 2006, once the newly-elected president René Préval took office. Honduras became the 17th member of the alliance in December 2007, under President Manuel Zelaya.[4][dead link] Belize set up the Belize Petroleum Energy Company to coordinate for the project.[5]

Non-members

Barbados denied that it had succumbed to pressure from the United States, who had a strained relationship with Venezuela, as the reason, but has not ruled out agreeing to Petrocaribe in the future. On August 31, 2005, Energy Minister Anthony Wood said that they are weighing options over signing Petrocaribe.[5] In April 2011 Hugo Chávez renewed his offer for Barbados to join PetroCaribe.[6]

Summits

The first summit, which launched the project was held in Puerto La Cruz, Venezuela.[1] The second summit of Petrocaribe was held in Montego Bay, Jamaica.[5] The third summit was held in Caracas, Venezuela and the fourth summit was held in Cienfuegos, Cuba in December 2007.[1]

See also

Notes

External links