Guyana continues to source its oil needs from Trinidad and Tobago but Prime Minister Sam Hinds says that every effort is being made at the levels of the Minister of Foreign Affairs and Guyana’s ambassador to Caracas to re-establish supplies from neighbouring Venezuela.

It is a move which Raphael Trotman, PNCR parliamentarian and foreign affairs specialist, sees as not unwelcome, saying that at the end of the day Guyana has to ensure it gets maximum value for its dollar and that it was important in the context of the border controversy with Venezuela that we try to forge a relationship which could help in creating an enabling environment for its peaceful resolution.

The Prime Minister, explaining the reasons for wanting to re-establish supplies from Venezuela, said that at the current prices, the Energy Accord has the special potential of 25 per cent of the cost of fuel being made available as a loan at a very low rate of interest.

He said that the deferred payment is considered as balance of payment support and that if the money were used wisely the nation would be better off and better able to make the loan repayments down the road. If the nation wanted to access its supplies from Trinidad it would have to be prepared to make the necessary sacrifices which making prompt payment would entail.

Asked about the possibility of Trinidad and Tobago not being so forthcoming on the next occasion when Guyana had to turn to it in an emergency, the Prime Minister said that generally oil producers were very accommodating although there was a price for that accommodation which was usually not high.

Trotman told Stabroek News in an invited comment that notwithstanding the fact that oil has never been used by Venezuela against Guyana to force a resolution of the border controversy, Guyana should always keep lines open for accessing alternative supplies.

Trotman believes though that Trinidad would understand if Guyana were to take advantage of a concessionary arrangement in preference to accessing its supplies from the twin-island state.

He observed that at all times Guyana had to take decisions which were in its national interest notwithstanding the political alliances that it had forged.

Venezuela has been the supplier of Guyana’s choice and about two years ago this country was admitted to the Caracas Energy Accord which would allow it to access supplies on concessionary terms. However, the internal upheaval in Venezuela which began at the end of last year, prevented Guyana from accessing supplies under the Accord and forced it to source supplies from Trinidad and Tobago.

Last year Guyana imported some 2.65 million barrels of petroleum products at an average price of US$32.6 a barrel. In 2001 it imported 3.06 million barrels at an average price of US$32.1 a barrel. Imports this year, Stabroek News has been reliably informed, are running at the same levels as last year.

The Prime Minister commenting on the competitiveness of the price at which supplies were being obtained from Trinidad and Tobago, said that it was “generally competitive.”

He explained that factors that are taken into consideration are the price FOB at Trinidad, the CIF price, quality, and conditions of sale including the period within which payment for supplies has to be made.

During the PNCR administration Guyana sourced its petroleum supplies from Trinidad and Tobago but this was cut off after Guyana ran up a huge bill, which it was unable to meet when payment was demanded.