Jamaica:Gov't to sign oil pact with Ecuador next week

"The San Jose Accord in full swing" Observer Reporter Saturday, March 22, 2003

WESTERN BUREAU -- Jamaica will next week sign an agreement with Ecuador for the supply of 12,000 barrels of oil per day from that country, as the Government puts measures in place to ensure that the country's oil supply is not affected by the US/Iraq war.

"The Venezuelan market should be restored for us to receive supplies within a month, but also, we have been able to pursue other markets," Commerce, Science and Technology Minister Phillip Paulwell told Montego Bay's business leaders yesterday.

He was speaking at a meeting called to discuss the impact of the war on the productive sector.

"We are therefore saying that with Venezuela back (soon), and Mexico under the San Jose Accord in full swing, and now with Ecuador coming on as a new partner, we will not have a shortage of petroleum products, whether this time or in the foreseeable future," he added.

But the minister stressed the need for energy conservation, as it was still not clear how high the price of the commodity would rise during the ongoing crisis.

"Initially the price (of oil) is falling but it is felt that we won't know where the price will reach until another week or so," Paulwell said.

At the same time, he repeated earlier reassurances given by the Government that they do not expect a shortage of food items during the crisis.

"We have adequate supplies of flour, chicken, eggs and other items that are imported generally; so we do not anticipate that we will have any problems with basic food supplies," Paulwell noted. "A lot of supplies come from North America and other areas but in none of these areas we believe the war will affect our ability to import."

The minister added that there should be sufficient domestic food items on the market due to this year's significant increase in domestic crop production.