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Summit Reaffirms Caribbean’s Commitment To PetroCaribe Oil Agreement

ST. JOHN’S, Antigua, CMC – Caribbean, as well as South and Latin American countries, have re-affirmed their commitment to the Venezuela-led oil initiative PetroCaribe, according to Antigua and Barbuda’s Prime Minister, Baldwin Spencer.

Spencer said that regional government leaders who met in Nicaragua for the PetroCaribe summit over the last weekend “agreed that these arrangements had been a vital element in enabling PetroCaribe partner countries to cushion some of the worst effects of the ongoing global economic crisis with particular emphasis on support for vulnerable groups and communities”.

Under PetroCaribe, Caribbean countries benefit from preferential rates on crude oil, refined products, and LPG or its energy equivalent, from Venezuela. The payment arrangement allows for purchase of oil on market value for 40 percent up front, within 90 days. The remainder of the payment can be made over a period of 25 years with one percent interest, provided that oil prices are above US$40 per barrel.

The oil pact was launched in 2005 and was aimed at strengthening the member countries of the Bolivarian Alliance for the Peoples of America (ALBA). But there have been reports here that since the death of President Hugo Chavez in March, the PetroCaribe oil agreement appeared to be in limbo.

Prime Minister Spencer during the summit special consideration was given by the delegates to the recommendations of a Working Group set up to review approaches for enhancing cooperation and integration between PetroCaribe partner countries.

“In this regard a number of critical areas were agreed for detailed technical work in assessing the potential mechanisms for a PetroCaribe Economic Zone, including a time-line for recommendations to regional leaders.”

In his address to the summit, Prime Minister Spencer underscored the contribution of PetroCaribe in Antigua and Barbuda and the region in “providing assistance to the most vulnerable members and sectors of society and PetroCaribe’s important developmental role during the current global economic slowdown”.

The summit also recognized the “central and heroic role” of Chavez, as well as that of former Cuban President Fidel Castro, “in establishing PetroCaribe and in furthering the goal of strengthening cooperation and promoting people centered development in the hemisphere”.

The summit also expressed support for the new government and people of Venezuela, “as they seek to consolidate the country’s social and economic gains and to promote cooperation with the governments and peoples of Latin America and the Caribbean”.

The next PetroCaribe summit will be held in Haiti.

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