Venezuelan President Hugo Chavez and the leaders of 13 Caribbean countries signed an agreement on the creation of a regional oil initiative called Petrocaribe on Wednesday.

The accord came at the First Caribbean Energy Summit in Puerto La Cruz, 330 km east of the Venezuelan capital Caracas. It was proposed by Chavez with the aim of promoting regional energy integration and helping the Caribbean nations to overcome difficulties caused by rising oil prices.

The new Petrocaribe is a regional organization aiming to strengthen energy cooperation. It will be responsible for exporting Venezuela's oil to the Caribbean countries cheaply and accepting payment in a more flexible form.

The Venezuelan state oil company will also create a new affiliate to deliver fuel and oil directly to those nations.

Chavez said at the one-day meeting that as a country with rich oil resources, Venezuela is willing to share them with the Caribbean countries.

Cuban leader Fidel Castro hailed the proposal as an important step toward regional energy integration.

Barbados and Trinidad and Tobago did not sign the document due to their differences.

Source: Xinhua