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Chávez seeks influence with oil diplomacy
In just one month, Venezuela has cut deals with five countries.
(Page 3 of 3)
• Ms. Harman is Latin America bureau chief for the Monitor and USA Today.
Oil deals across the hemisphere
1) The Caribbean- Chávez was in Jamaica Tuesday to finalize details on the PetroCaribe agreement signed in June. The deal, which is meant to help small Caribbean economies cope with high fuel prices, offers generous financing for oil sales and favorable rates in exchange for goods, services, or credit. Thirteen of the 15 members of the Caribbean Community group, or Caricom, have already signed on.
2) PetroSur Chávez is pushing for the creation of a southern America group with Argentina, Brazil, and Uruguay, offering oil deals similar to the PetroCaribe pact.
3) PetroAndina - Another proposal to sell discounted oil to the Andean countries of Bolivia, Ecuador, Peru and Colombia.
4) Cuba - Venezuela has become a vital economic lifeline for Cuba - shipping in 90,000 barrels a day of oil. In return, Havana has sent more than 30,000 physicians, sports coaches and teachers to Venezuela. Further, the Venezuelan state-run oil company, Petroleos de Venezuela S.A (PdVSA) opened its Caribbean headquarters in Cuba in April.
5) Uruguay - Earlier this month, Chávez signed an oil-supply and energy accord with that country's first elected leftist President Tabaré Vázquez. Under the accord, Caracas will guarantee oil supplies to Montevideo for the next 25 years at preferential terms: Uruguay will pay for 67 percent of the oil with export products, and the rest under low-interest financing. PdVSA also announced plans to upgrade Uruguay's La Teja refinery to process Venezuela crude.
6) Paraguay - Venezuela just agreed to start shipping to Paraguay 8,600 barrels per day of crude oil byproducts, particularly fuels, at a 25 percent discount and with no interest.
7) Ecuador - After oil workers forced state-owned Petroecuador to shut down production last week, Ecuador's President Alfredo Palacio asked Chávez for an oil loan to meet its export commitments. It was immediately provided. Prior to these events, Venezuela had offered to process Ecuador's oil (Ecuador has no refineries) and sell products produced from Ecuadorian crude in the international market.
8) Argentina - Venezuela has been supplying Argentina with emergency fuel oil since last year to help it cope with energy shortages in exchange for cash and agricultural products. This month, Chávez and President Néstor Kirchner announced plans to supply Argentina with an addition 4 million barrels of Venezuelan fuel oil, in return for which Argentina would provide shipbuilding expertise and farm machinery to Venezuela.
Also, Argentina's state owned oil company Energia de Argentina (Enarsa) joined with PdVSA this year, and opened two service stations in Buenos Aires. Several hundred more joint service stations in Argentina are planned.
9) Brazil - Chávez and President Luiz Inácio Lula da Silva are discussing plans to jointly build a $2.5 billion refinery in Brazil. Brazilian state-controlled Petrobras is also considering oil and gas exploration and production activities in Venezuela.
