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Home :: Business :: Petrojam to resume oil purchases from Venezuela in June

PETROJAM WILL resume commercial purchases of crude oil from Venezuela's state oil company PDVSA in June, when the local refinery reopens, following routine maintenance now being undertaken at the 36,000 barrels-a-day plant.

The resumption date was agreed by Minister of Commerce, Science and Technology, Mr. Phillip Paulwell, and the Venezuelan Minister of Energy and Mining, the Hon. Rafael Ramirez, during a two-day visit to Venezuela by Minister Paulwell, from April 9-10, to discuss bilateral co-operation in the field of energy.

Oil shipments from Venezuela, one of Jamaica's main suppliers, were disrupted last December, following political unrest in that country.

The two Ministers agreed that shipments would continue in keeping with the San Jose Accord, signed with Venezuela and Mexico, as well as, the 2000 Caracas Agreement with Venezuela, which guarantee Jamaica access to some 5.3 million barrels of crude oil annually from Venezuela, supplied at world market prices. The agreements also provide for concessionary loans for priority economic development projects.

Minister Paulwell outlined plans for the upgrade of the Petrojam Refinery to his Venezuelan counterpart and Minister Ramirez offered technical support for development of the project, which both parties agreed, would allow Jamaica to increase the volume of crude oil purchased from Venezuela, and strengthen co-operation between the energy sectors in both countries.

Minister Ramirez expressed the appreciation of Venezuelan President, Hugo Chavez, for the "strong and courageous positions of principle" adopted by Jamaica and CARICOM member states during the recent Venezuelan crisis, and affirmed the commitment of the Venezuelan Government to mutual co-operation with Jamaica in various areas.

Minister Paulwell also met representatives of the Venezuelan Bank for Economic and Social Development (BANDES), which administers the San Jose Accord. The Minister discussed possible assistance for Jamaica's Energy Conservation Programme and, in particular, the establishment of the Energy Conservation Fund. He said the importation of solar heater panels from Venezuela under the San Jose Accord, was among the priorities to be addressed.

The Commerce, Science and Technology Minister noted that BANDES had, in the past provided over US$6 million under the San Jose Accord for Jamaica's Rural Electrification Programme, and he proposed further co-operation in this area, as the Programme enters a difficult and costly phase. The Minister's proposals on energy conservation and rural electrification were favourably received by the BANDES representatives, and will be further reviewed.

Minister Paulwell, who also met with Venezuela's Minister of Science and Technology, the Hon. Dr. Marlene Yadira Cordova, and the Minister of Production and Commerce, the Hon. Ramon Rosales, highlighted the achievements of the Scientific Research Council in food technology and offered to share Jamaica's experience in this and other areas. The possibility of student exchanges for technological training was also discussed.

Minister Paulwell is now in Quito, Ecuador for discussions with that country's Energy Minister and state oil company, Petroecuador, regarding crude oil purchases. The Minister is being accompanied by the Permanent Secretary in the Ministry of Commerce, Science and Technology, Dr. Jean Dixon, and has received technical support on his visit from the Petroleum Corporation of Jamaica, Petrojam and the Embassy of Jamaica in Caracas.

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