Petrocaribe - Misplaced Pages

(Redirected from PetroCaribe) Oil procurement agreement

Petrocaribe S.A.
Company type	Public
Industry	Oil
Founded	June 2005
Headquarters	?
Products	Oil
Revenue	USD/$ ? billion (2006)
Operating income	USD/$ ? billion (2006)
Net income	USD/$ ? billion (2006)
Parent	PDVSA
Website	www.petrocaribe.org

Venezuela Petrocaribe members and CARICOM members Petrocaribe members not part of CARICOM Petrocaribe retired members CARICOM members not part of Petrocaribe

Petrocaribe was a regional oil procurement agreement between Venezuela and Caribbean member states. The trade organization was founded on 29 June 2005 in Puerto La Cruz, Venezuela during the presidency of Hugo Chávez. Venezuela offered member states oil supplies on a concessionary financial agreement. Petrocaribe has been part of the "pink tide" in Latin America seeking to achieve post-neoliberal development in the region. In 2013 Petrocaribe established links with the Bolivarian Alliance for the Americas (ALBA) aiming to go beyond oil trade and promoting economic cooperation. The deal fell apart by 2019 after dwindling oil production, corruption, and oil price fluctuations took their toll.

In November 2022, Saint Vincent and the Grenadines became the first country to resume receipt of oil under the PetroCaribe terms. In 2023, Venezuela stated that it intended to revive the trade program.

Treaty details

The agreement was initiated with the aim of having solidarity with other countries in accordance with Bolivarian Alliance for the Americas (ALBA), and developed from the Caracas Accord. The payment system allows for the purchase of oil at market value for 5%-50% up front with a grace period of one to two years; the remainder can be paid through a 17-25 year financing agreement with 1% interest if oil prices are above US$40 per barrel. The agreement builds on payment terms from the San José Agreement and the Caracas Energy Accord. Energy and Petroleum Minister and President of PDVSA Rafael Ramírez said of the deal that it seeks to cut out the middleman in such transactions: "We're not talking about discounts...We're talking about financial facilities, direct deliveries of products, infrastructure."

Membership

Petrocaribe had a total of 18 members: Antigua and Barbuda, Bahamas, Belize, Cuba, Dominica, Dominican Republic, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Saint Kitts and Nevis, Saint Vincent and Grenadines, Saint Lucia, Suriname, and Venezuela.

12 of the members were from the 15-member Caribbean Community (CARICOM). At the first summit, 14 countries joined the trade organization: Antigua and Barbuda, the Bahamas, Belize, Cuba, Dominica, Grenada, Jamaica, Saint Lucia, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Suriname, and Venezuela. At the third summit, Haiti and Nicaragua joined the union. Guatemala joined in July 2008 but left the organization in November 2013 stating that Venezuela had not provided them with the ultra-low financing rates that they had been promised.

Haiti had not been initially invited to the talks, since Venezuela did not recognize its then post-Jean-Bertrand Aristide government. However, Hugo Chávez actively "courted" newly elected president René Préval when he took office, much to Chevron, Exxon, and the US State Department's chagrin. After Venezuela had invested in developing Haitian infrastructure, and after the Haitian government convinced Chevron to deliver the oil from Venezuela, on 8 March 2008 the first shipment of oil was received. Honduras became the 17th member of the alliance in December 2007, under President Manuel Zelaya, ⁣⁣ but left the organization after the 2009 coup d'état before rejoining it in May 2012. Belize set up the Belize Petroleum Energy Company to coordinate for the project.

Non-members

Barbados denied that it had succumbed to pressure from the United States, which has a strained relationship with Venezuela, as the reason, but has not ruled out agreeing to Petrocaribe in the future. On August 31, 2005, Energy Minister Anthony Wood said that they are weighing options over signing Petrocaribe. In April 2011 Venezuelan president Hugo Chávez renewed his offer for Barbados to join Petrocaribe.

Panama applied for membership on 3 March 2009 and initially said it would continue to join Petrocaribe under the new president, but Panama remains a non-member.

Summits

The first summit, which launched the project was held in Puerto La Cruz, Venezuela. The second summit of Petrocaribe was held in Montego Bay, Jamaica. The third summit was held in Caracas, Venezuela and the fourth summit was held in Cienfuegos, Cuba, in December 2007. The seventh summit was held in Caracas, on 6 April 2013. The membership of Honduras was revived after suspension because of the 2009 Honduran coup; Guatemala became an official new member of Petrocaribe. Summit also propose deeper cooperation between Petrocaribe states and states of ALBA on basis of new economic zone. Summit had discussion also about tourism, air traffic and food security. The 11th Summit was hosted by Haiti in Port-au-Prince.

Recent development

As of 2019, PetroCaribe has mostly dried up because of Venezuela's eroded domestic production and refining, but political and commercial ties in some prominent cases have endured. Critics say PetroCaribe suppressed the development of renewable energy, burdened these small nations with billions of dollars in debt – and spurred corruption. Venezuela oil industry is in turmoil. Venezuela's oil rigs, which had been producing nearly 3 million barrels of crude oil a day in 2014, produce now less than a million barrels a day. In addition to the economic collapse of Venezuela, U.S. sanctions against the country made it almost impossible to route bank payments to Venezuela. The only country receiving crude oil from Venezuela at this type of preferential treatment is Cuba. It is still getting some oil through Petrocaribe and Cuba doesn't have the debt problems because it brokered a deal to pay for its oil by sending doctors to Venezuela.

In 2022, Saint Vincent and the Grenadines received a shipment of oil from Venezuela under the terms of PetroCaribe, becoming the first country to resume PetroCaribe ties. In 2023, Venezuela announced its intention to revive PetroCaribe. In July 2023, CARICOM members called for the removal of U.S. sanctions from Venezuela which prohibit them from purchasing oil under the favorable terms of PetroCaribe.

Notes

^ Cederlöf, Gustav; Kingsbury, Donald V. (2019). "On PetroCaribe: Petropolitics, Energopower, and Post-Neoliberal Development in the Caribbean Energy Region". Political Geography. 72: 124–133. doi:10.1016/j.polgeo.2019.04.006. S2CID 164598358.
Beaubien, Jason (20 July 2019). "The Fallout From A Seemingly Sweet Oil Deal For Venezuela's Neighbors". NPR.
Cederlöf, Gustav (2023). The Low-Carbon Contradiction: Energy Transition, Geopolitics, and the Infrastructural State in Cuba. Critical environments: nature, science, and politics. Oakland, California: University of California Press. ISBN 978-0-520-39313-4.
^ "PDVSA". Retrieved 26 August 2018.
Glickhouse (10 May 2013). "Explainer: What Is Petrocaribe?". Americas Society/Council of the Americas.
"Venezuelan Economic Crisis Forces President's Hand". HuffPost. Archived from the original on 2013-12-10. Retrieved 2013-12-03.
Kim Ives (7 June 2011). "How Washington and Big Oil Fought PetroCaribe in Haiti". Haïti Liberté. 4 (46). Retrieved 24 March 2019.
"Oil Industry Professionals, Trading, Risk Management & Treasury, Settlement & Compliance - Platts". 4 June 2011. Archived from the original on 4 June 2011. Retrieved 26 August 2018.
^ "BBCCaribbean.com - News - Barbados will not sign Petrocaribe". Bbc.co.uk. Retrieved 26 August 2018.
"Chavez wants Barbados to sign PetroCaribe". Nationnews.com. 20 April 2011. Retrieved 26 August 2018.
"Panama asks to join Petrocaribe | Infosurhoy". Archived from the original on 2014-03-28. Retrieved 2014-03-28.
"Panama to continue in Petrocaribe despite ideological differences - Daily News - EL UNIVERSAL". Archived from the original on 2014-03-28. Retrieved 2014-03-28.
"Venezuela, PetroCaribe, and the "Orgy of Corruption"". Caribbean Investigative Journalism Network. 5 December 2019.
"Caribbean Leaders Want Petrocaribe Back. Could It Happen?". Americas Quarterly. August 15, 2023. Retrieved 2023-12-11.
Walla, Katherine (2023-01-25). "Experts react: The US opens up Caribbean energy supplies with a sanctions exception for Venezuela. What does it mean for the region?". Atlantic Council. Retrieved 2023-12-11.
"Caribbean leaders seeking discounted oil criticize US sanctions against Venezuela". AP News. 2023-07-07. Retrieved 2023-12-11.

External links

Like Sucre in Ayacucho! - Speech by President Hugo Chávez to the 6th Petrocaribe Summit

v t e Hugo Chávez
45th President of Venezuela (1999–2013)
Early life and career	Early life Military career Coup attempt of 1992 Presidential election of 1998 Death and state funeral
Presidency	Cabinet of Hugo Chávez 1999 Constitution General election of 2000 Presidential election of 2006 United Socialist Party of Venezuela Constitutional referendum of 2007 Constitutional referendum of 2009 Presidential election of 2012
Political events	Coup attempt of 2002 Venezuelan general strike of 2002–2003 Recall referendum of 2004 2005 Venezuelan parliamentary election 2007 protests RCTV Referendum 2010 Venezuelan parliamentary election
Domestic policy	Boliburguesía Bolivarianism Bolivarian Circles Bolivarian missions Bolivarian Revolution Chavismo Colectivos Economic policy Plan Bolívar 2000 Socialism of the 21st century Venezuelan communal councils
Foreign policy	Bank of the South Bolivarian Alliance for the Americas (ALBA) Community of Latin American and Caribbean States (CELAC) Petrocaribe
Image	Aló Presidente Bolivarian propaganda Chavismo: The Plague of the 21st Century El ocaso del socialismo mágico El pueblo soy yo Hugo Chávez's cult of personality Mi amigo Hugo ¿Por qué no te callas? Public image of Hugo Chávez ¿¡Revolución!? teleSUR The Silence and the Scorpion Venezuelanalysis Venezuela Information Office
← Rafael Caldera Nicolás Maduro → Category

v t e Presidency of Hugo Chávez
Tenure	Cabinet of Hugo Chávez Plan Bolívar 2000 Vargas tragedy Decree 1011 Tascón List Assassination of Danilo Anderson teleSUR United Socialist Party of Venezuela (PSUV) Detention of Maria Lourdes Afiuni PDVAL affair Death of Franklin Brito Yare prison riot 2013 Uribana prison riot Daktari Ranch affair Rodrigo Granda affair 2006 Chávez speech at the United Nations South American Energy Summit ¿Por qué no te callas? 2008 Andean diplomatic crisis Operation Emmanuel Los Maniceros massacre 2010 Colombia–Venezuela diplomatic crisis
Elections	2000 general election 2000 trade union referendum 2004 recall referendum Tascón List 2005 parliamentary election 2006 presidential election 2007 constitutional referendum 2009 constitutional referendum 2010 Venezuelan parliamentary election 2012 presidential election
Domestic policies	Boliburguesía Bolivarianism Bolivarian Circles Bolivarian missions Florentino Guaicaipuro Habitat Identidad Mercal Miranda Piar Ribas Robinson Sucre Vuelta al Campo Vuelvan Caras Zamora Bolivarian Revolution Chavismo Colectivos Economic policy National Center for Foreign Commerce Snitch Law Socialism of the 21st century Venezuelan communal councils
Foreign policy	Bank of the South Bolivarian Alliance for the Americas (ALBA) Petrocaribe
Opposition	Con mis hijos no te metas Coup attempt of 2002 Plaza Altamira military 2002–2003 general strike Protests 2002 2004 2007 RCTV Referendum

v t e Pan-Americanism
History	Spanish American wars of independence Decolonization of the Americas Latin American integration North American integration Patria Grande Simón Bolívar José de San Martín Lucas Alamán Inter-American Commission of Women United States involvement in regime change in Latin America
Organizations	Amazon Cooperation Treaty Organization (ACTO) Andean Community (CAN) Association of Caribbean States (ACS) Bolivarian Alliance for the Americas (ALBA) Caribbean Community (CARICOM) Central American Integration System (SICA) Community of Latin American and Caribbean States (CELAC) Contadora group Contadora support group Forum for the Progress and Integration of South America (PROSUR) Latin American Economic System (SELA) Latin American Integration Association (ALADI) Lima Group (LG) Mercosur Organization of American States (OAS) Organisation of Eastern Caribbean States (OECS) Organization of Ibero-American States (OEI) Pacific Alliance Petrocaribe Rio Group Union of South American Nations (UNASUR) United Nations Economic Commission for Latin America and the Caribbean (ECLAC, CEPAL) United States Pirate Party (USPP)
Projects	Andean passport CARICOM passport CARICOM Single Market and Economy CARIPASS Central America-4 Border Control Agreement Central America-4 passport Eastern Caribbean Currency Union Initiative for the Integration of the Regional Infrastructure of South America (IIRSA) Interoceanic Highway SUCRE
Institutions	Andean Parliament Bank of the South Caribbean Court of Justice Caribbean Development Bank Central American Parliament Development Bank of Latin America and the Caribbean (CAF) Inter-American Development Bank Latin American Parliament Mercosur Parliament South American Parliament
Free trade areas	Caribbean Free Trade Association (CARIFTA) CARIFORUM Dominican Republic–Central America Free Trade Agreement (CAFTA-DR) Economic Partnership Agreements Free Trade Area of the Americas G3 Free Trade Agreement United States–Mexico–Canada Agreement (USMCA)
Events	Pan American Games Pan-American Congress

Categories: