Venezuela waits for Dominican diplomats to respond to allegations

Oil exports to the Dominican Republic will not resume until the island's diplomats respond to allegations that exiles there are plotting to topple President Hugo Chavez, Venezuela's oil minister said. Earlier, Chavez froze oil exports to the Caribbean country under a program known as the San Jose Pact until Dominican authorities respond to accusations that a coup plot is being hatched on the island.
"It's a decision that is very much tied to the diplomatic responses and the willingness of (Dominican) authorities to clarify all these things," said Venezuelan Oil Minister Rafael Ramirez. "Meanwhile, this measure continues, and I think Venezuela has the legitimate right to defend our democracy," Ramirez told.

The Dominican government denies knowledge of any Venezuelan coup plot in its country. The Dominican Republic and other Caribbean and Central American nations have long received subsidized oil from Venezuela and Mexico under the San Jose Pact. Chavez claims former Venezuelan President Carlos Andres Perez, who resides part-time in the Dominican Republic, is involved in the alleged plot. Venezuela has recalled its ambassador to Santo Domingo, but officials have said there no plans to break off bilateral relations.
Industry authorities in the Dominican Republic have said the suspension of exports will not affect fuel supplies, saying the state-owned Dominican Oil Refinery would continue buying oil elsewhere. The Dominican company did the same thing during a two-month strike earlier this year that halted Venezuelan oil exports, authorities said. Opponents of Chavez, including former oil workers and industry analysts, criticized the president for cutting off exports.

Humberto Calderon, a former president of Venezuela's state-run oil company Petroleos de Venezuela S.A., or PdVSA, said Chavez is unfairly using oil to punish a poor country and sending a warning to others.
"Never before has Venezuela used oil as a political tool," he said. "This is not only a signal to the Dominican Republic, but to the rest of the Caribbean countries that are vulnerable," to a Venezuelan oil export freeze, added Calderon.

Gonzalo Feijoo, a PdVSA executive fired for joining the strike that failed to oust Chavez, said the decision to freeze exports is linked to faltering oil output in Venezuela. "This is due to a fall in Venezuelan production," said Feijoo.
Chavez fired 18,000 PdVSA workers for joining the strike that fizzled in February. Former PdVSA executives argue that Venezuela is currently producing about 2.6 mm of bpd of oil. PdVSA is having difficulties in boosting output due to lack of technical expertise, maintenance and manpower. Chavez insists production is roughly 3.3 mm bpd.