Petrocaribe summit to discuss Panama

PANAMA. The VI Petrocaribe summit has been set for next June, and among the topics to be discussed will be the inclusion of Panama in the Energy Agreement, according to the president of the Venezuelan National Assembly’s Energy and Mines Commission, Angel Rodriguez.

“From 2007 to February 2009, PDVSA has sold Panama more than 18.5 million barrels of various products such as oil, gasoil, and gasoline, through third parties, mostly multinational companies.

“We think (Panama) can save costs if they eliminate the intermediaries and thus our state oil company will make a concrete offer on volume, adjusted to the energy consumption needs of Panamanians,” said Rodriguez.

Petrocaribe is an initiative launched by Chavez in 2005, with 18 member countries so far, and with the objective of eliminating intermediaries in the crude oil and derivatives distribution, as well as facilitating financing conditions for impoverished Caribbean economies.

Last March, President Martin Torrijos requested Panama’s inclusion into Petrocaribe during an official visit to Caracas.

If Panama’s requests are met, Venezuela would sell oil to Panama at the same prices as the international market, but without intermediaries.

The Hydrocarbon National director, Wolfram Gonzalez previously said that such an agreement would allow Panama to pay half of the value of oil and its shipment in the first 30 days.

The rest of the money would be paid at a later date, at a rate to be negotiated.