Venezuelan state oil company PDVSA has begun sending products to Nicaragua through Albanic, a joint venture formed in April between PDVSA and an association of Nicaraguan municipalities, a PDVSA statement said Sunday.
PDVSA will supply Nicaragua with up to 10 million barrels of products per year, which the company says is enough to satisfy Nicaragua’s electric shortages in the short term.
PDVSA is supplying the products under its PetroCaribe initiative, which ships crude and products to Caribbean countries under preferential terms. Nicaragua must pay 60% of the bill in 90 days and has 23 years to pay off the other 40% with 1% interest and a two-year grace period.
“It’s not just about Nicaragua but all Central America and the Caribbean,” said Alejandro Granado, PDVSA director for PetroCaribe, in the statement. “We are demonstrating that united peoples are capable of surmounting any barrier and solving its difficulties.”
The first shipment, 1,800 barrels of diesel, arrived in Nicaragua on Saturday.
The joint venture between PDVSA and the Nicaraguan municipalities was an initiative of Daniel Ortega, secretary general of the Sandinista National Liberation Front and candidate for Nicaragua’s November presidential elections, the statement said.
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