Jamaica to benefit from PetroCaribe indefinitely

[Jamaica-gleaner.com]Jamaica will continue to enjoy preferential payment terms for crude oil under the PetroCaribe pact with Venezuela "indefinitely", Phillip Paulwell, minister of science, technology, energy and mining, disclosed yesterday.

"There was a recommitment from the Venezuelan government to the PetroCaribe agreement and, regardless of where the price of oil is, they have committed to the agreement, unchanged ... indefinitely," Paulwell told The Gleaner, providing an update on Friday's heads of government meeting in Venezuela.

Under the PetroCaribe agreement, signed in 2005, the South American country allows some Caribbean territories to buy oil at market value but only pay a percentage of the cost upfront. The balance can be paid over 25 years at one per cent interest. For Jamaica, that upfront payment represents 60 per cent but, if the price of oil goes above US$100 per barrel, it slips to 50 per cent, with the other 50 per cent paid over the 25 years.