Venezuela to Supply
Guatemala With Oil
By RACHEL JONES,
Associated Press
President Hugo Chavez
said Saturday that he is
expanding his
Venezuela's Petrocaribe
oil-supply pact to
include Guatemala.
Through Petrocaribe,
oil-rich Venezuela
provides nations with
oil under preferential
terms, including
long-term loans and the
option of paying for at
least some of the costs
with services or goods
such as rice, bananas
and sugar.
"It is an obligation to
help the weakest"
countries, Chavez said
in a televised address.
"The United States would
pay us $200 a barrel for
oil — give it to me
then," said Chavez,
whose nation is the
world's 10th largest oil
producer. "Now Haiti,
no. Haiti gets
preferential treatment.
Socialism says: To
everyone according to
their needs."
Chavez said nearly 20
heads of state are
attending a Petrocaribe
summit in the Venezuelan
city of Maracaibo this
weekend, where
Guatemalan President
Alvaro Colom will
formalize his country's
membership.
Venezuelan Oil Minister
Rafael Ramirez said the
pact "strengthens
nations in the region
facing a difficult
market," referring to
oil prices that have
topped $140 a barrel.
In particular he touted
some $83 million that
state-run oil company
Petroleos de Venezuela
has invested since 2006
to rehabilitate Cuba's
Soviet-era Cienfuegos
refinery.
Cuba's ambassador to
Venezuela, German
Sanchez Otero, said the
project aims to boost
Cienfuegos' refining
capacity from 65,000
barrels per day to a
total capacity of about
150,000.
Oil economist Mazhar al-Shereidah
believes soaring prices
have motivated countries
including Guatemala to
join. But the agreement
is an economic
"sacrifice" for
Venezuela, he said.
Al-Shereidah added that
while Chavez's critics
say he is using the pact
to expand his political
influence in the region,
such an effect may be
minimal.
Referring to Chavez's
2006 bid to gain
Venezuela a seat on the
U.N. Security Council,
al-Shereidah said: "None
of his friends supported
him."
Venezuela says it is
sending more than
200,000 barrels of oil a
day under Petrocaribe to
17 countries in Latin
American and Caribbean.
Member nations pay for
half of the cost of the
oil within 90 days, and
for the other half in
the next 25 years at a
fixed interest rate of 1
percent. |
