Possible State Run Oil Company in El Salvador

The strategies for El Salvador to enter into Petrocaribe include the creation of a state run company for importing and marketing petroleum products.

Tuesday, October 15, 2013

Elmundo.com.sv reports that "José Luis Merino , FMLN leader and senior advisor to Alba Petroleos in El Salvador, says the party does not have an agreement model to join Petrocaribe, in the case that they win the presidential election next year. "

At the moment there are two alternatives for the country's entry into the Venezuelan energy project with the objective of "ensuring that the government has $640 million available every year for paying the country's oil bill."

The first option is to create a state-owned company engaged in importing and marketing petroleum products and the second alternative is that the government only adopts the importing part and markets products through Alba Petróleos stations.



More on this topic

More State Interference in Fuels in El Salvador

June 2014

Gasoline distributors are concerned about Petrocaribe's recommendation that the Salvadoran government be the sole manager of oil imports.

An urgent appeal to the Government for it to call together companies from the sector and clarify the implications of El Salvador's entry into Petrocaribe, has been the reaction of the distributors of domestic fuels, in light of statements by representatives of Alba Petróleos suggesting that the government should establish an entity to manage the purchase and import of hydrocarbon derivatives purchases.

El Salvador Joins Petrocaribe

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There is still no official information about whether brand name distributors will be able to keep importing fuel from their source of choice.

The request for entry into the oil agreement with Venezuela marks the economic and political differences between the outgoing government of Mauricio Funes and that of the new President Sanchez Ceren, indicating a higher affinity for the conglomerate led by Venezuela.

Alba in El Salvador: For Those Who Dont Want Soup... Two bowlfuls

February 2014

The company owned by Venezuela and a group of municipalities from the ruling party continue to diversify; now they sell water and finance housing projects.

The Alba business conglomerate announced through José Luis Merino, Alba Petróleos advisor and coordinator of the ruling FMLN party, that it is to add a new business to those already it established in El Salvador since it came into the country in 2006.

Corruption Charges Against Alba Petróleos

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The National Association of Private Enterprise in El Salvador has declared that "money laundering is enabling Alba Petróleos to dabble in various production and commercial activities in the country."

According to an article in Elsalvador.com "The Executive Director of the ANEP, Arnoldo Jimenez said that this development ‘is part of a whole scheme of money laundering, diversion of funds and corruption that exists behind Alba ', referring to 'how Alba and el Frente (FMLN) are gaining economic control through political power'. "