Venezuela to supply Colombia with 7 million gallons of oil per month

PDVSA office (Photo: Esacademic)

Venezuela’s oil company PDVSA said Saturday that it will supply Colombia with more than 7 million gallons of oil per month, starting from August 15.

In a statement published on the oil company’s website, PDVSA president Rafael Ramirez said his company was also in the process of negotiating a special price for the border region in the deal. “This scheme is to provide the Colombian public with high quality oil at a border, that is, intermediate, price,” said Ramirez after meeting with Colombian state officials.

He also added that next year Venezuela will supply Colombia with 100 million cubic feet of gas.

Colombia and Venezuela are also developing plans to conduct audits in order to ensure that gasoline and oil is not smuggled illegally across the borders. The governments hope that the new arrangement will significantly help prevent smuggling of oil and other hydrocarbon products.

The Venezuelan government said to believe that fuel smuggling has cost their economy $1.4 billion and has even suggested that GPS should be used to track the journey of oil tanks throughout Colombia.

Sources

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