March 22, 2006

Oil supply agreement with FMLN

CARACAS
Venezuelan President Hugo Chávez’ government agreed to supply oil under preferential terms to El Salvador on Monday, signing an accord with a group of leftist mayors from the Central American country.

Oil shipments under the accord are to begin “as soon as possible,’’ said Violeta Menjivar, the mayor-elect of San Salvador.

“Great hopes are awakening in our country,’’ she said.

Details of the amount of oil to be sold or the precise terms were not immediately available.

The agreement was signed between the Venezuelan state oil firm subsidiary PDV Caribe and the Intermunicipal Energy Association for El Salvador, which officials said was formed by mayors of the Farabundo Martí National Liberation Front, or FMLN.

Chávez and other speakers paid tribute at the signing ceremony to the late FMLN leader Shafik Handal, who died in January of a heart attack, and who as a rebel years ago fought U.S.-backed troops during the country’s civil war. Salvadoran President Tony Saca criticized the oil deal on Monday, urging the FMLN not to generate “false hopes’’ among Salvadorans.

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