US embassy cable - 04PANAMA2137

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PANAMA'S RELIANCE ON VENEZUALAN OIL

Identifier: 04PANAMA2137
Wikileaks: View 04PANAMA2137 at Wikileaks.org
Origin: Embassy Panama
Created: 2004-08-20 19:18:00
Classification: CONFIDENTIAL
Tags: ECON ENRG XK PM CARIB ECONOMIC AFFAIRS
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.


 
C O N F I D E N T I A L PANAMA 002137 
 
SIPDIS 
 
 
FOR WHA/EPSC EDUARDO J. MARTINEZ 
 
 
E.O. 12958: DECL: 08/20/2014 
TAGS: ECON, ENRG, XK, PM, CARIB, ECONOMIC AFFAIRS 
SUBJECT: PANAMA'S RELIANCE ON VENEZUALAN OIL 
 
 
REF: STATE 176535 
 
 
Classified By: ECON Chief Andrew Bowen for reasons 1.5 (b) and (d). 
 
 
1. (U) Per instructions, paras 2 and 3 contain answers to 
reftel. 
 
 
2. (U) While Panama imports over half of its oil from 
Venezuela, it does not do so under the terms of either the 
San Jose or Caracas Accords.  Panama is a signatory to both 
Accords; however, it did not/not renew the Caracas Accords 
after the initial year.  Panama purchased oil using the San 
Jose Accords in the 1980s (until 1989) because, at that time, 
the GOP controlled the oil industry in Panama.  Panama's last 
refinery closed at the end of 2002 and today the country only 
imports refined oil.  In 2003, Panama imported 7,654,366.78 
barrels.  Fifty-one percent was imported from Venezuela, 27 
percent from the United States, 5 percent from Trinidad, and 
17 percent from other countries. 
 
 
3. (C) Panama does not consider Venezuela to be a stable 
supplier of petroleum because delivery dates and schedules 
are not met consistently.  In the past, Panama received its 
oil directly from refineries in Venezuela.  However, these 
refineries began to have production problems and could not 
accommodate demand.  Consequently, Panama receives its oil 
from Venezuela after it has been refined in Aruba.  Venezuela 
maintains that this is the only refinery available to meet 
Panama's demand.  The GOP has not/not received any formal 
proposal from the Government of Venezuela regarding 
PetroAmerica.  (Comment.  From post's conversations with GOP 
hydrocarbon experts, it does not seem likely Panama would be 
interested in this initiative.  End comment.) 
MCMULLEN 

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