Honduras says ready to resume relationship with Venezuelan oil alliance

Honduras was ready to restore ties with Venezuelan oil alliance Petrocaribe to buy preferential oil from the country, Honduran President Porfirio Lobo said Tuesday.

Lobo told reporters that during a recent talk with Venezuelan Foreign Minister Nicolas Maduro, he said he was willing to travel to Caracas as early as possible to sign a deal that would re-establish Honduras' partnership with the alliance.

The talk took place over the weekend in the Colombian city of Cartagena, where Lobo signed an agreement with former Honduran President Manuel Zelaya that allowed his "safe return" to Honduras.

Caribbean countries, after joining Petrocaribe, can buy oil from Venezuela on conditions of preferential payment.

The alliance, launched in 2005, allows some Caribbean nations to buy oil from Venezuela on market value but only a certain amount is needed up front. The remainder can be paid with an interest rate as low as 1 percent through a 25-year financing agreement.

Caribbean nations can purchase up to 185,00 barrels of oil per day on these terms.

Honduras joined Petrocaribe in December 2007, but Caracas decided to stop oil shipments to Honduras after Zelaya, a close ally of Venezuelan President Hugo Chavez, was removed from office in June 2009.

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