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VENEZUELAN OIL SHIPMENTS TO CUBA WILL RESUME IN SEPTEMBER, BUT FACE CHALLENGES FROM FORCES OPPOSED TO PRESIDENT HUGO CHAVEZ.

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Venezuela's Minister of Production, Industry, and Commerce Ramon Rosales announced July 22 that the state-owned oil monopoly Petroleos de Venezuela (PDVSA) would resume oil shipments to Cuba Aug. 1. The shipments were cut off in April by leaders of the short-lived coup against President Hugo Chavez (see NotiSur, 2002-04-19).

The decision to resume shipments came after Cuba Petroleos (CUPET) negotiated an agreement with PDVSA to refinance outstanding payments for previous shipments.

PDVSA began oil sales to Cuba under an agreement (Programa de Cooperacion Energetica) signed in October 2000. The pact calls for PDVSA to ship 193 million barrels of crude and derivatives each year for five years (see NotiCen, 2000-11-02) under generous payment terms.

Opposition delays, sues to stop shipments

Within days of the announcement, the resumption date was postponed to Sept. 1. The anti-government Caracas newspaper El Universal reported that PDVSA did not have enough supply on hand because of prior commitments to other buyers.

But other sources suggest the delay is part of a continued effort by Chavez opponents within PDVSA's management to kill the oil deal altogether. Stratfor.com quoted PDVSA sources as saying managers had forced the postponement until Cuba pays the estimated US$142 million still outstanding.

El Nacional, another Caracas newspaper opposed to Chavez, published a letter that...

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