Venezuelan Oil Alliance Still Attracts Costa Rica

Even as oil prices plummet, Costa Rica is still seeking to enter an energy alliance spearheaded by Venezuelan President Hugo Chávez.

Costa Rica is in talks to join Chavéz’s initiative, PetroCaribe, which allows 18 countries from Latin America and the Caribbean to buy Venezuelan petroleum under favorable conditions.

These conditions have worsened since Costa Rica decided to enter PetroCaribe three months ago. In July, when oil climbed to $147 a barrel, PetroCaribe members could pay for 60 percent of their fuel bill over 25 years.

Now, as oil hovers around $70 a barrel, PetroCaribe members can pay delay payment on just 40 percent of their fuel bill over 25 years. The rest must be coughed up within 90 days.

Still, PetroCaribe membership will protect Costa Rica against future price hikes and shortages, Roberto Dobles, environment, energy and telecommunications minister, told the daily La Nación.

Costa Rica will likely become a full member at the next PetroCaribe summit in December. Until then, the National Oil Refinery (RECOPE) must pay its entire fuel bill within eight days of purchase.

–Gillian Gillers