Energy Talks

As government continues to seek ways to reduce the country’s oil bill and utilize renewable energy sources, it also strengthened ties with oil-producing countries and related interests in 2006.

PM Meets with President Chavez

            On August 14, Prime Minister Portia Simpson Miller, headed the welcome party to greet President of the Bolivarian Republic of Venezuela, Hugo Chavez at the Sangster International Airport in Montego Bay when he arrived for a one-day visit.

            Both leaders, along with a team of Ministers, then held talks covering several areas of social and economic co-operation as well as regional and international issues.  President Chavez later met with former Prime Minister, P.J. Patterson.

            Prime Minister Simpson Miller and President Chavez signed an amendment protocol to the energy co-operation agreement and joint Communiqué, while senior government representatives from both administrations signed a series of agreements amounting to a multi-million dollar package of financial assistance from the Government of Venezuela to the Jamaican Government. 

            These included: A Memorandum of Understanding for the refinancing of loans and provision of working capital, in connection with the construction and development of a multi-lane tolled highway from Kingston to Montego Bay, valued at US$260 million – part of the Highway 2000 Project; and a joint venture agreement between the Petroleum Corporation of Jamaica (PCJ) and Venezuela’s Petroleos de Venezuela (PDVSA), the Venezuelan oil refinery. 

            This will give PDVSA, a 49 per cent share through PDV Caribe with a 51 per cent share being retained by the PCJ.  This investment of US$150 million will facilitate the expansion and upgrading of the local oil refinery.                                                                         Additionally, there was an agreement for the execution of three projects under the San Jose Accord.  These were: The construction of phase 3 of the Montego Bay Sports Complex, at a cost of US$9.62 million; the construction of phase 2 of the Port Maria Civic Centre and the provision of a line of credit of US$2 million for the Jamaica Mortgage Bank, to finance affordable housing solutions.

            The amendment protocol to the energy co-operation agreement between Jamaica and Venezuela, results in an increase in Jamaica’s quota from 21,000 barrels of oil per day to 23,500 barrels per day.  This agreement will be effective from June 2006 to June 2007.

            Under the Petro Caribe energy co-operation agreement, Venezuela supplies oil and petroleum products on favourable terms to 14 Caribbean nations, including Jamaica, in order to assist in coping with cost of living increases, flowing from rising oil prices on the world market. 

With Trinidad’s PM

            In May, the twin-island Republic of Trinidad and Tobago agreed to supply LNG to Jamaica at a price to be agreed. This was disclosed at a joint press briefing hosted by the Prime Minister, Portia Simpson Miller and Trinidad and Tobago’s Prime Minister Patrick Manning in Port of Spain. The press briefing followed the holding of bilateral talks between the two CARICOM Heads.

            Prime Minister Simpson Miller, who was on her first official visit abroad since taking office in March, said that the arrangement must be of benefit to the two countries. It was agreed that the technical teams of both countries would meet to hammer out the details of the price arrangement.

Honoured With Key to

Port of Spain

            In April, Mrs. Simpson Miller wrapped up her three-day official visit to Trinidad and Tobago with a civic reception held in her honour by the Acting Mayor of Port of Spain, Councillor Rishi Lakhan. The Prime Minister was presented with the key to the city of Port of Spain, its highest honour.

            Earlier in the day Prime Minister Simpson Miller visited the National Gas Company where she was brought up to date on the work of the organisation.  

            She reiterated the commitment that she made in her previous bilateral talks with Prime Minister Manning, to invest in the smelter plant being built in Trinidad and Tobago.  She said that the partnership between the two countries must stand as a good example of what could be achieved in the region if resources were pooled.                                    

Jamaica/Malaysia Explore Energy Cooperation

In May, following talks with Prime Minister of Malaysia, Dato Seri Abdullah Ahmad Badawi, Prime Minister Simpson Miller announced that the two countries were to explore opportunities for the supply of liquefied natural gas and offshore petroleum exploration.  The Malaysian Prime Minister was on a two-day official visit to Jamaica.

            Mrs. Simpson Miller said that both countries had agreed to the promotion and implementation of specific programmes aimed at fostering closer bilateral relations in the areas of trade and investment, science and technology, education and social development. 

            She said this was in keeping with an agreement to strengthen and advance diplomatic relations between both countries, with the primary objective of raising the level of cooperation through the development of a strategic bilateral partnership.