PDVSA Intends to Stop Oil Shipments to Cuba

PDVSA has notified the Cuban government of its intention to stop delivering around 53,000 barrels a day of crude oil due to lack of payment, El Nacional reported Friday. A PDVSA commission headed by Vice President Jorge Kamkoff has recommended that company president Ali Rodriguez end a bilateral agreement under which PDVSA supplies Cuba crude oil under favorable financial terms, El Nacional reported, citing a company document. The document reportedly said PDVSA sold Cuba crude oil worth about $700 million dollars, of which at least $63 million hasn't been paid. PDVSA officials were unavailable for comment.

PDVSA supplies one-third of Cuba 's oil. However, Cuba has received no crude since last month's failed coup attempt against President Hugo Chavez. During the 48 hours Chavez was ousted from power, PdVSA officials vowed not to deliver a drop of oil to Cuba, claiming Venezuela is giving its oil away. However, after Chavez returned to power the government vowed to resume shipments. Cuba consumes about 150,000 barrels per day, of which one-third is domestically produced.