Energy Co-operation Agreement PetroCaribe between the Government of the Bolivarian Republic of Venezuela and the Government of Jamaica.

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 The San Jose Accord

The San Jose Accord, an energy cooperation programme for Central American and Caribbean Countries, arose out of the need to help reduce the heavy oil import burden on non-oil producing countries in the region.

The Accord is a Venezuela/Mexico oil facility initiated in 1980 when the international oil market was experiencing its second shock. The PCJ negotiated on behalf of the Government of Jamaica. Under the agreement, Mexico and Venezuela, under concessionary financial terms, provide up to 29,000 barrels of crude oil per day to Jamaica.

Under the original Agreement, there was provision for 20% of the cost of the crude oil to be made available as a low interest loan for development projects when the price of oil exceeds US$15 per barrel. The Agreement is reviewed annually and the terms have been modified, making the Accord less concessional.

The Accord provides for:-

• Quota allocation to be made to the importing country each year, based on the quantity supplied the previous year.
• Deferred payment on 20% of the cost of the crude, to be made available to the government as a low interest loan for development projects.
• If development projects are not achieved, then the 20% deferred payment is to be settled within five (5) years.
• Petrojam refinery to process crude oil under the Agreement.  

Venezuelan Oil Agreement

In October 2000, Venezuela proposed a major energy deal to supply oil to the tune of 80,000 BS/D to ten (10) Central American and Caribbean states, including Jamaica.

The agreement, which complemented the San Jose Accord of 1980, is dubbed the Caracas Energy Agreement and established preferential price levels and percentages for financing long term low interest loans to the various countries based on the quantity of oil purchased. Loans ranged from 10-25% of the payment for the oil based on the prices paid. There was a one-year grace period with payments extending over 15 years at an interest rate of 2%.

Jamaica was able to access some 7.4 million barrels of oil annually at a cost of $15 - $30 per barrel and pay 80% of the cost upfront.  The other 20% was converted into a soft 15 year loan.   

  Assistencia Reciproca Petrolera Empresarial Latinoamericana

ARPEL - (Assistencia Reciproca Petrolera Empresarial Latino Americana) is an oil and gas forum with membership of oil companies in the Latin American and Caribbean region. It fosters economic, commercial and technical relations with the purpose of creating favorable business opportunities. PCJ became a member in 1985.

Latin American Energy Organization (OLADE)

The Latin American Energy Organization (OLADE) is an international public cooperation, coordination and advisory entity, established on November 2, 1973 with the signing of the Lima Agreement which was ratified by 26 countries of Latin America and the Caribbean. Jamaica is a member country. Olade's secretariat is in Quito, Ecuador.

Some of the objectives of OLADE are:-

• Promoting bilateral and multilateral energy integration
• Promoting the most appropriate and economical means to ensure energy supply and integration
• Promoting actions between member countries to develop and defend the natural resources of the respective countries and the region as a whole
• Promoting technical cooperation, exchange, and dissemination of scientific, legal and technical information.