PAULWELL
Robert Hart, Staff Reporter
JAMAICA COULD benefit from increased Venezuelan assistance in combating high oil prices that have led to massive increases in the cost of gasolene at the pump.
Phillip Paulwell, Minister of Com-merce, Science and Technology, said yesterday that Jamaica is one of several regional nations that will benefit from a recently proposed initiative spearheaded by South American oil giant Venezuela.
REFINING CRUDE IOL
The proposal, called the 'Petrocaribe Initiative', is intended to support Caribbean states as well as other countries within the Americas and will include the disbursement of shares in the Petrocaribe entity to participating nations. The initiative entails the refining of crude oil from Venezuela, shipping to Caribbean states (possibly in Petrocaribe owned/contracted vessels), wholesaling to existing retailers as well some retailing.
The refining could be undertaken in Venezuela, Trinidad and Tobago, Jamaica and Cuba.
MORE BENEFITS
"I don't think the country is aware that even though the price has been increasing (especially) in the last couple of months, that Jamaica has always been able to get a discount from the deal with Venezuela," said Minister Paulwell during yesterday's weekly post-Cabinet press briefing at Jamaica House.
The deal already in place with Venezuela relates to the Caracas Agreement and the San José Accord. "We believe this new initiative will enhance that and there will be more benefits because we are going to become shareholders in this company that will be involved in the processing and distribution of oil," said Minister Paulwell, who has portfolio responsibility for energy.
Yesterday, he also noted that Venezuela has expressed interest in participating in the upcoming multimillion-dollar expansion of the Petrojam refinery in Kingston. He announced that Cabinet has approved the establishment of a technical team to develop a finance package to fund the expansion from 35,000 to 50,000 barrels per day.
He explained that the involvement of private capital will be among the options to be examined in implementing one of 15 likely refinery upgrades at a possible US$50 million to US$600 million.
"We don't intend to go anywhere near there (US$600m), but we have not yet made a determination," he said.
SUPPORT FROM OPPPOSITION
Minister Paulwell also assured that the projected Venezuelan assistance under the Petrocaribe Initiative would not be affected by the recent unrest in the South American country. He noted that Jamaica has already received 'understanding' from the Venezuelan Opposition that they would support the project in the event of a takeover.
"It is true that it (Petrocaribe) is being pushed by (Venezuelan) President Hugo Chavez, and he has been a great friend of this region, but we have an indication that the Opposition would also support," Minister Paulwell said.
The Petrocaribe initiative should be finalised during a meeting of Caribbean Energy Ministers to be held in Jamaica next month.
