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Venezuela Wants Cash in Reboot of Caribbean Oil-for-Beans Pact

  • PDVSA negotiating terms for shipments under new Petrocaribe
  • Oil production has plummeted since pact was first launched
A Petroleos de Venezuela refinery in El Palito, Venezuela.

A Petroleos de Venezuela refinery in El Palito, Venezuela.

Photographer: Manaure Quintero/Bloomberg

Venezuela’s state oil company is pushing to revive a defunct energy pact with the Caribbean under different terms as it seeks markets that are willing to pay cash for oil and refined products.     

Petroleos de Venezuela SA is lobbying island governments to negotiate terms for the new shipments under a revived Petrocaribe agreement, according to a person with knowledge of the matter. The pact was abandoned four years ago as Venezuela slid into economic catastrophe, oil production dwindled and Petrocaribe members ran up massive debts for the shipments. Today, Venezuela still struggles to provide enough fuel for its own citizens.