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Cuban official says Venezuelan oil no giveaway

Fri Nov 6, 2009 10:58pm IST
 
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* Cuba says paying more for Venezuela oil than it has to

* Does not want to encourage dependence on one oil source

By Marc Frank

HAVANA, Nov 6 (Reuters) - Cuba has chosen to pay a steeper price than it has to for Venezuelan oil so it can discourage itself from becoming too dependent on one source for energy, a senior Cuban official said on Friday.

Deputy Foreign Minister Rogelio Siera Diaz said Cuba chose to get oil under the more expensive "Caracas Accord" instead of through Venezuela's Petrocaribe group. The goal was to avoid complacency.

"We decided to stay with the Caracas agreement so we would not become too dependent," Siera said.

PetroCaribe, a Venezuelan initiative with 18 member nations including Cuba, allows for up to 50 percent of the cost of oil to be deferred at 2 percent interest for up to 25 years.

The Caracas agreement, begun in 2000 when oil prices were below $20 per barrel, allows for no more than a 25 percent deferral at a similar interest rate.

Cuba still receives most of its oil from Venezuela, which ships 93,000 barrels per day to help cover the island's daily demand of 150,000 bpd.   Continued...

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