Venezuelan “accessibly” priced oil for Paraguay

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Venezuelan President Hugo Chavez last Saturday added Paraguay to its “accessible” energy supply scheme which will entitle the landlocked South American Mercosur member to defer 25% payment of the oil bill.

The bilateral agreement similar to that signed with other Caribbean and Central American countries and Uruguay in Mercosur contemplates “modest payments terms” deferring the 25% payment for up to 15 years with an annual interest rate of 2%.

President Chavez stopped over in Asunción, Paraguay, Mercosur’s poorest member, Saturday for a few hours following his participation in the Mercosur Montevideo summit where Venezuela began proceedings to become a full member of the South American trade block, a process which can take from one to three years during which the country will have a voice “but not a vote”.

The agreement establishes that Paraguay can either pay the oil invoices in full or 75% within 90 days, said Paraguay’s government owned oil company, Petroleos Paraguayos (Petropar) chief Armando Rodriguez adding that the first Venezuelan shipment is scheduled to arrive next February/March.

MercoPress