Venezuela Ships Fuel Storage Tank to Dominica Under PetroCaribe Accord

The Associated Press
Published: Oct 28, 2005

CARACAS, Venezuela (AP) - Venezuela has shipped to Dominica a tank to store 5,000 barrels of diesel fuel on the Caribbean island, the vice president of Venezuela's state-run oil company announced Friday.
Alejandro Granados said the tank is part of Venezuela's effort to help Caribbean nations build oil-related infrastructure under the PetroCaribe agreement, initiative by Venezuelan President Hugo Chavez to help the region withstand the shock of record-high oil prices.

"PetroCaribe is beginning to develop infrastructure," Granados, the vice president of Petroleos de Venezuela, told the state-run Bolivarian news Agency.

The 33-ton tank was slated to arrive in Dominica on Oct. 31, he said.

In June, Chavez signed the PetroCaribe deal with 13 Caribbean countries, opening the way for oil-rich Venezuela to sell 120,000 barrels of fuel a day under preferential terms.

Under PetroCaribe, Caribbean countries pay market prices for oil, but can pay for a portion up front and finance the rest over 25 years at low interest rates. Buyers may also pay fuel-related debts with goods such as rice, bananas or sugar.

Venezuela is the world's fifth largest oil exporter.

AP-ES-10-28-05 1553EDT