OPPOSITION spokesman on energy Phillip Paulwell says it is now time for the Government to begin reopening diplomatic channels with Venezuela, while being careful not to breach sanctions laid down by the American Government.

He also called for an update on the status of Jamaica’s acquisition of Venezuela’s 49 per cent share in the Petrojam refinery, payment for which has been in escrow over the past years, while relations with Venezuela remain at a standstill.

In his contribution to the 2023/24 sectoral debate in the House of Representatives on Tuesday, Paulwell suggested, “We can work with the US to achieve greater accord, and at least to settle that issue of the [Petrojam] refinery, at this time.”

He said the country needs an update on the status of the shares, given that tensions between the US and Venezuela appear to be dissipating.

“We are sensing now an easing in the relationship between the US and Venezuela, and in fact some of our own countries in the region have begun to do trading with Venezuela once more under the PetroCaribe agreement,” he pointed out, arguing that Jamaica is indebted to Venezuela.

“Jamaica must never be ungrateful to Venezuela, because as we now celebrate improved debt-to-GDP ratio, we should remember that Jamaica benefited from a US$1.5-billion write-off,” he stated.

In February 2019 the Government tabled a Bill for the compulsory acquisition of Petróleos de Venezuela’s (PDVSA) 49 per cent holdings in Petrojam, for the ownership of the shares to be vested in the accountant general, in trust for compensation, to be paid to PDVSA.

The Government said the ownership structure of Petrojam at the time exposed the country to serious risks, threatening energy security and economic stability. Furthermore, it said those risks had been exacerbated by sanctions imposed by third-party countries.

Paulwell pointed out on Tuesday that Petrojam, despite the issues of the past, has been holding its own, but “we must not give them basket to carry water”. He stressed that if the Government does not this year make decisive decisions — based on the recommendations which were made for the sustainability of the refinery following the 2019 scandals which rocked the public entity — there will be no future for Petrojam.

“Other competitors with access to cheaper sources of fuel will put them out of business. Another year has passed and no action,” he said.

In December 2018, an auditor general report on Petrojam tabled in Parliament revealed startling deficiencies at the refinery, which were fleshed out at several Public Administration and Appropriations Committee sittings.

The Chris Zacca-chaired review committee, which was appointed by Prime Minister Andrew Holness, made 12 recommendations, which included that the Government should transfer management of the refinery and terminal to the private sector, and chart a course for privatising the operational management of the refinery.