Caribbean Countries Sign into Venezuela´s Petrocaribe Initiative

Caribbean leaders meeting in Jamaica officially launched Petrocaribe, a Venezuelan President Hugo Chavez initiative with the purpose of helping the region face the mounting energy bill.

Also present at the ceremony was Cuba´s Fidel Castro that together with Jamaican Prime Minister P.J. Patterson had already signed the agreement which will provide Petrocaribe members Venezuelan crude at preferential prices, with deferred payments and the possibility of settling part of the bill with local grown produce.

Nine Caribbean countries signed the new oil agreement in Montego Bay including Dominican Republic, Antigua, Suriname, St Kitts and Nevis, Grenada, Guyana, Belize, Dominica and St. Vincent and Grenadines. Trinidad and Tobago, Barbados and the Bahamas did not sign the agreement arguing they wanted more information on the benefits to be accrued from Petrocaribe.

Under the terms of the Petrocaribe agreement Caribbean country members will purchase 185.000 barrels per day of crude from Venezuela. Representatives from Barbados and Trinidad and Tobago expressed reservations about the agreement due to concerns about their own oil exports.

Petrocaribe was officially created June 29 in the Venezuelan city of Puerto La Cruz following on President Chavez initiative and supported by most Caribbean countries. Petrocaribe was granted an initial capital infusion of 50 million US dollars by Venezuela. The long term plan is to integrate the Caribbean basin into a regional free trade area with the support of Venezuela´s rich oil and financial resources which could total 17 billion US dollars in ten years.