Venezuela confirmed yesterday that it is asking the Dominican Republic to respect “its sovereign right” to transport the oil that it sells under the Caracas Agreement on Energy Cooperation. This would force the rescission of the contract between the Dominican Refinery (REFIDOMSA) and OSG, the current shipping line. The refinery’s president Aristides Fernandez Zucco warned that such rescission on the contract that is in force until 31 January 2006 would result in stiff penalties for the refinery as well as some lawsuits. Fernandez Zucco told reporters from Hoy that he had, indeed, received a fax from the head of the Venezuelan Petroleum Company (PDVSA) that confirmed this sovereign decision, not only by the company but also by the Venezuelan government. According to Fernandez Zucco, when he took over the refinery, he found that former officials had extended the contract with OSG until 2006. The refinery pays OSG US$15 million a year to bring petroleum to its docks.