Costa Rica Ask Venezuela
For More Time To Pay Its
Oil Purchases
Costa Rica will be
asking Venezuela to
expand its credit for up
to 90 days to pay for
its purchases of crude
oil while it concludes
the process of joining
Petrocaribe.
The proposal will be
made to a delegation of
Petróleos de Venezuela (Pdvesa)
and Petrocaribe that is
due to arrive in Costa
Rica tomorrow to discuss
the joining of
Petrocaribe.
Currently Costa Rica
imports 18.000 barrels
of crude that it refines
and must be paid for
within 8 days.
Roberto Dobles, ministro
de Ambiente Energía y
Telecomunicaciones, said
that he will see if he
get advantageous
conditions from
Petrocaribe and that the
longer payment schedule
will help the finances
of the state refinery
the Refinadora
Costarricense de
Petróleo (Recope).
The rising price of
crude oil on
international markets
has left a gaping hole
of more than ¢32 billion
colones in the finances
of Recope.
Petrocaribe is a
Caribbean oil alliance
with Venezuela to
purchase oil on
conditions of
preferential payment.
The alliance was
launched in June 2005.
The payment system
allows for a few nations
to buy oil on market
value but only a certain
amount is needed up
front; the remainder can
be paid through a 25
year financing agreement
on 1% interest.
The deal allows for the
Caribbean nations to
purchase up to 185,000
barrels of oil per day
on these terms. In
addition it allows for
nations to pay part of
the cost with other
products provided to
Venezuela, such as
bananas, rice, and
sugar.
PetroCaribe will only
deal with a state
controlled entity,
meaning that the
PetroCaribe agreement is
based on eliminating all
intermediaries.
Costa Rica decided to
join Petrocaribe on July
16 and is expected to
become a member during
the upcoming summit
scheduled for December.
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