PDVSA to up hydrocarbons supply to 23,500b/d

Venezuela has agreed to increase the supply to Jamaica of crude, liquefied petroleum gas (LPG) and refined products to 23,500 barrels a day (b/d) from 21,000b/d, Venezuela's state oil company PDVSA reported. Jamaica's Prime Minister Portia Simpson and Venezuela's President Hugo Chávez signed the agreement during a visit by the latter to the island country. PDVSA and Jamaica's state energy company PCJ also signed an agreement for two supply contracts that outline the type of crude and derivatives Jamaica would receive from 2006-07. In addition, PCJ and PDVSA agreed to create a joint venture - Petrocaribe Jamaica - to carry out Venezuela's Petrocaribe oil initiative. PCJ will hold 51% of the new company and PDVSA's Petrocaribe subsidiary PDV Caribe the remainder. Petrocaribe Jamaica will refine and sell hydrocarbons in Jamaica and other regional markets as well as execute the Kingston refinery expansion project. This project aims to increase processing to 50,000b/d from 35,000b/d. "The [refinery] plant will process 100% Venezuelan oil," Venezuela's energy and oil minister and PDVSA president Rafael Ramírez said. PDVSA also will participate with Jamaican refiner Petrojam to distribute the fuel in Jamaica.