Venezuela announced it will increase its petroleum sales to Central America and the Caribbean. The announcement was made during the OPEC Summit held in Caracas. Venezuela says it will sell 160,000 barrels a day of petroleum to Caribbean and Central American countries. This is the sum of 80,000 barrels a day already being exported to signatories of the Acuerdo de San José (including the DR) and an additional 80,000 daily barrels to be exported as part of the Acuerdo Energético de Caracas to be signed later this month. The announcement was made by Hugo Chavez in the presence of representatives from Panama, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, DR, Jamaica, Belize, Barbados and Haiti who met in Caracas with Minister of Energy and Mines, Alí Rodríguez Araque, Deputy Minister Petroleum Bernardo Alvarez and president of Petróleos de Venezuela, Hector Ciavaldini to discuss the terms of the agreement that is expected to be signed on 19 October. The Acuerdo Energético de Caracas establishes new conditions for the sales. In addition to a 2% annual interest rate, term of 15 years, and a year grace period, it also makes possible payment with goods and services. The bills will be paid at market price and 75-95% of these can be cancelled in cash. The rest will be financed at 2% interest rate. President Chavez said that the agreement will be government to government, and not with private companies. The Acuerdo de San José establishes cooperation funds as a result of the petroleum bills. The money becomes part of the Fondo de Inversiones de Venezuela and can be used for infrastructure work through lines of credit for 50% of goods and services from Venezuela.
