Dionne Rose, Staff Reporter
PRIME MINISTER P.J. Patterson will today sign a memorandum of understanding (MoU) with the Venezuelan government at Puerto La Cruz in Venezuela to provide crude oil and refined products at favourable credit terms.
Accompanying the Prime Minister is Phillip Paulwell, Minister of Commerce, Science and Technology.
The MoU will see the Petroleum Corporation of Jamaica (PCJ) and the Venezuelan company, PDVSA entering into an agreement.
Mr. Patterson told journalists on Monday at the weekly post-Cabinet press briefing that the MoU was part of the PetroCaribe initiative between the Caribbean and Venezuela.
He explained that the MoU encompasses several facets including the strengthening of the existing San Jose Accord and the Caracas Agreement. The intention is to lower transportation costs via the elimination of intermediaries by direct provision of transportation to island markets.
The MoU will also explore the integration of existing refinery infrastructure in Jamaica, Trinidad and Tobago, the Dominican Republic and Cuba to supplement Venezuela's own refining system.
The Prime Minister said that the MoU could see a possible joint distribution and marketing of petroleum products through a new commercial brand to be established in an effort to deliver reduced prices to consumers in the region and security of supply to the regional market.
"Both President (Hugo) Chavez and I are insistent that as a result of the benefits which will accrue from these new arrangements, there should be social benefits as well," Mr. Patterson said.
BENEFITS
These benefits he said would relate to education, housing and health.
He said that participating CARICOM countries are expected to agree with Jamaica on acceptable schemes of cooperation that would return value to the Venezuelans for the support being provided under PetroCaribe.
Mr. Patterson will leave Venezuela for St. Lucia, where he will attend the 26th meeting of the Conference of Heads of Government of CARICOM, which is being held from July 3 to 6.
"This year is going to be an exceptional meeting, in that we are going to commence on Saturday by meeting with Leaders of Oppositions in the region. We think it is going to be necessary for there to be ongoing dialogue between Government and Opposition as we seek to entrench our democracies," Patterson said.
