No ulterior motive in Guyana's exclusion from oil deal -Venezuelan embassy Stabroek News October 5, 2000 An article in a Venezuelan newspaper which implied that Guyana's exclusion from a favourable oil deal was a way of applying pressure was dismissed as journalistic showboating by the Venezuelan embassy here. The October 2, article in El Universal stated that Guyana would be excluded from preferential oil agreements to be granted to less developed nations in Central America and the Caribbean. It went on to quote Venezuelan Foreign Minister, Jose Vincente Rangel, as saying that "oil has always been a political weapon over the years" and that "for now" Guyana will not be included in the agreements "because we have talks of another nature." Observers have questioned Guyana's reliance on its neighbour for oil supplies given the tensions over the Essequibo region. Recent moves have been made to source petroleum products from Trinidad but so far the company, Petrotrin, has failed to submit a quote. Venezuela and Guyana have a commercial agreement through the state-run PDVSA and the Guyana Energy Agency which has been in effect since 1986. Fernando Rincon, minister counsellor charge d'affaires for the Venezuelan Embassy in lieu of the permanent ambassador, told Stabroek News that the newspaper report was merely a journalist looking to highlight a story. "We have been a reliable source of oil [to Guyana] for many years and we hope this will continue. There have been absolutely no problems with the agreement." He did note that local newspapers had reported Guyana's efforts to secure petroleum products from Trinidad. The new Energy Agreement of Caracas, Rincon said, did not mean that the countries would be getting cheaper fuel. It was primarily concerned with credit facilities for those developing countries struggling under the increased burden of oil imports, given the dramatic increases in world prices. Guyana did have a credit component to its original agreement, with a low-interest loan provision which financed several housing schemes. This lapsed in the mid-nineties. Last year, former ambassador Hector Azocar had expressed his country's willingness to restart the facility should Guyana wish. Rincon said he could not speak directly on Rangel's comments as they came from a newspaper article. He said the reference to oil as a political weapon was of a very general nature and there was no reference to Guyana which was one of a number of countries excluded from the agreements. To his knowledge there had been no objections raised by the Guyana government. The two countries are holding discussions on a number of issues including natural resources, trade and cultural ties, not only the border controversy, Rincon noted. He said Venezuela did not make decisions on such agreements based on whether they liked you or not. The new energy agreement will mean the supply of an extra 80,000 barrels of oil daily on top of the 80,000 already supplied under the existing San Jose Agreement, El Universal said. Tensions have risen between Guyana and Vene-zuela over the border controversy between the two countries. Caracas upped the ante by vowing to block the Beal spaceport deal and its interference with offshore oil concessions granted by Georgetown caused two explorers to change their plans. As a result, the UN Good Officer Oliver Jackman paid a visit to both countries earlier this year to listen to their concerns. Follow the goings-on in Guyana in Guyana Today