Foreign Correspondence

[Amaunet]

Look what Chavez was up to

Now for the not so obvious reasons….

Dated excerpt:
Iran started thinking about switching too; Venezuela, the 4th largest oil producer, began looking at it and has been cutting out the dollar by bartering oil with several nations including America's bete noir, Cuba.
#msg-4131138

And now, November 20th, 2004.
Chavez and Fernandez said with the price of oil at record-high levels ($50-plus per barrel), 25% of the oil sales between the two countries would be financed at 2% annual interest for 15 years, with a one-year grace period to pay the principal. In addition, the D.R. may pay the credits in goods and services, and the one-year agreement is automatically renewable.

-Am

Chavez oil deal popular in D.R.

Saturday, November 20th, 2004.

By John Collins of Caribbean Business
During his recent whirlwind visit to the Dominican Republic (D.R.), Venezuelan President Hugo Chavez signed an agreement with President Leonel Fernandez reinstating the suspended Accord of Caracas between the two countries.

Under the accord, Venezuela commits to supply 50,000 barrels of oil or equivalent forms of fuel per day to the D.R. The new agreement complements the San Jose Accord, which establishes credits based on 20% of oil sales to recipient countries.

Chavez and Fernandez said with the price of oil at record-high levels ($50-plus per barrel), 25% of the oil sales between the two countries would be financed at 2% annual interest for 15 years, with a one-year grace period to pay the principal. In addition, the D.R. may pay the credits in goods and services, and the one-year agreement is automatically renewable.

The accord also includes a commitment by the Venezuelan government to collaborate in the exploration for oil in the D.R. and to train Dominican technicians. “This agreement is an expression of generosity and solidarity not very common in today’s world, in which market conditions prevail,” said Fernandez.

The D.R. currently sources fuel from Venezuela at $40 a barrel. At the current price levels, the new accord could represent annual savings of $200 million in the trade balance between the two countries. There is some concern about what could happen if the price of oil begins to drop, but most Dominicans, who have endured chronic blackouts and fluctuating prices, welcome the agreement, hoping it will help to stabilize the bad economic situation in the D.R.

The D.R. consumes an average of 140,00 barrels of oil daily, of which 110,000 are imported from Venezuela. The imports from Venezuela, however, were suspended in September 2003 after Chavez clashed with former D.R. President Hipolito Mejia, accusing Mejia of permitting former Venezuelan President Carlos Andres Perez to use the territory of the D.R. to conspire against Chavez.


http://www.puertoricowow.com/html/businessnews-detail.asp?amaspHidden_listActive=true&amaspField....

S American nations sign oil deal

Last Updated: Thursday, 18 November, 2004, 23:57 GMT

Venezuela will sell the oil at a preferential rate

Venezuela, the world's fifth largest oil exporter, has signed an agreement to supply Paraguay with more than 18,000 barrels of oil per day.

The agreement was signed by Venezuelan President Hugo Chavez and his Paraguayan counterpart Nicanor Duarte.

Mr Chavez said such agreements were important to create an energy alliance across South America.

Paraguay will pay for 75% of the oil on delivery and will have 15 years to pay the balance.

After signing the deal, President Duarte said it would allow Paraguay to invest US $75m in social programmes.

Venezuela says it produces some 3.1m barrels of oil a day but critics say it produces closer to 2.6m barrels.

Mr Chavez says regional integration is one of the arms of his "peaceful revolution".

He has proposed the creation of two regional energy companies to boost oil production and distribution in South America and the Caribbean.

Venezuela already has deals for preferential oil rates with more than 15 countries in the region.

http://news.bbc.co.uk/2/hi/americas/4024349.stm