CARICOM urged to take united stance on PetroCaribe oil deal
As the debate rages on over Barbados and Trinidad and Tobago’s decision not to sign on to Venezuela’s
PetroCaribe oil deal, the head of St Lucia’s Petroleum Dealers Association is calling for CARICOM to take a
united stance on the oil deal.
President of the St Lucia Petroleum Dealers Association Everiste Jn Marie said St Lucia and the rest of the Caribbean
Community (CARICOM) countries should heal any disagreement with Trinidad and Tobago over the oil initiative with
Venezuela.
Under the Caracas initiative, PdVSA, Venezuela s state-owned energy company will supply signatories with 185,700 bpd
of oil under the PetroCaribe agreement. Some Caribbean states import oil from the Persian Gulf at prices similar to
those paid by developed countries.
Over the past few months, the price per barrel of oil has hovered near or above the $ 60 mark. As part of the
agreement, a fund has also been established for social and economic programmes, with Caracas making an initial
contribution of $ 50 mm, whileadditional contributions will flow through savings from direct trade or contributions
from the financed portion of oil purchases.
The Caribbean countries will also be allowed to defer payments for 30 % of their imports for 15 years at an interest
rate of two % per year, and if oil goes above $ 50 per barrel, the interest rate will fall to one % per year, with
payment for 40 % of the imports being spread over 25 years.
From among the CARICOM countries only Trinidad and Tobago and Barbados have not signed the agreement and
Port-of-Spain has cautioned that the agreement could undermine its economy and oil exports to the region.
We recall that recently, the Trinidad and Tobago Prime Minister expressed his concern at the apparent willingness of
most Caribbean community states to go into this arrangement with Venezuela. He did seem very disturbed about that,
and there has to be political fall from this, Jn Marie said.
He said he was also worried that the initiative could split the region.
