| A subsidiary of the Venezuelan national oil
company will ship 12 million gallons of discounted home-heating
oil to local charities and 45,000 low-income families in Massachusetts
next month under a deal arranged by US Representative William
D. Delahunt, a local nonprofit energy corporation, and Venezuela's
president, White House critic Hugo Chávez.
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approximately $9 million deal will bring nine million gallons
of oil to families and three million gallons to institutions that
serve the poor, such as homeless shelters, said officials from
Citizens Energy Corp., which is signing the contract. Families
would pay about $276 for a 200-gallon shipment, a savings of about
$184 and enough to last about three weeks.
The contract is to be signed Tuesday by officials from Citizens
Energy, based in Boston, and CITGO, a Houston-based subsidiary
of Petróleos de Venezuela SA. The contract was arranged
after months of talks between Delahunt, a Quincy Democrat active
in Latin American affairs, and Chávez, a leftist former
paratrooper and fierce critic of the Bush administration.
''We recognized that we had an opportunity," Delahunt's
spokesman, Steve Schwadron, said yesterday.
Chávez showed ''an inclination to do a humanitarian distribution"
of oil, and poor families in Massachusetts had a ''desperate need"
for relief from high home-heating prices, Schwadron said. He characterized
the deal as one between ''a US company and two nonprofits to help
them do more of what they already do, with terms that mean the
price is good."
Delahunt was not available for comment yesterday.
Schwadron said the congressman did not get involved in the details
of the contract, but had raised the issue with Chávez and
helped connect the nonprofits with CITGO, which is owned by PDV
America Inc., an indirect, wholly owned subsidiary of Petróleos
de Venezuela SA, the national oil company of Venezuela.
When the discounted oil arrives early next month, Citizens Energy
-- whose chairman and president, former US representative Joseph
P. Kennedy II, also helped arrange the contract -- will screen
recipients with the help of local organizations that serve the
poor. Some 350 local dealers will then distribute three-fourths
of the oil to local families.
MassEnergyConsumer Alliance, a nonprofit group that also offers
discounted oil, will distribute or sell the remaining quarter
to homeless shelters, food banks, and low-income housing groups,
said Larry Chretien, the group's executive director. Recipients
must apply for the help, he said.
Home heating oil prices are expected to increase by 30 percent
to 50 percent this winter because of rising oil prices, Chretien
said. Because funding for the federal Low Income Heating Assistance
Program is expected to pay for only one delivery of heating oil
to eligible households, the CITGO agreement could help ease the
crunch on some families, he said.
''Fuel assistance is woefully underfunded, so this is a major
shot in the arm for people who otherwise wouldn't get through
the winter," Chretien said. He said he hoped the deal would
present ''a friendly challenge" to US oil companies -- which
recently reported record quarterly profits -- to use their windfall
to help poor families survive the winter.
Some foreign-policy analysts said Chávez helped broker
the deal in part as a jab at President Bush. Chávez has
frequently belittled the White House, saying it is not doing enough
to help the poor, and he has called Bush an ''assassin" and
a ''crazy man." Now, he has helped arranged for 285,000 barrels
of oil to arrive in Massachusetts at a 40 percent discount over
the next four months. Each barrel contains 42 gallons.
''It is a slap in the face" to the Bush administration,
said Larry Birns, executive director of the Council on Hemispheric
Affairs, a group that tracks Latin American politics and government.
''Chávez is involved in petro-diplomacy."
Chávez has drawn criticism from human rights groups for
his treatment of political foes and curbs on media freedoms. But
he has also become a hero to some on the left who say he has helped
improve conditions for the poor in his country and drawn attention
to US foreign policy in Iraq and Latin America.
On Friday, a US State Department spokesman declined to comment
on the oil deal with Chávez.
Schwadron said Delahunt's involvement had nothing to do with
Venezuela's strained relationship with the Bush administration
and was meant as a specific effort to ease high heating costs
for Bay State residents.
Massachusetts already gets a great deal of oil from Venezuela,
Chretien said, and the deal with CITGO means only that the oil
will be less expensive. He added that he has never been approached
with such an offer from a US oil company.
''We did not negotiate foreign policy here," Schwadron said.
''We steered clear of that."
Kennedy said he was not concerned about Chávez's politics.
''You start parsing which countries' politics we're going to
feel comfortable with, and only buying oil from them, then there
are going to be a lot of people not driving their cars and not
staying warm this winter," Kennedy said. ''There are a lot
of countries that have much worse records than Venezuela. At the
end of the day it's not our business to go choosing other peoples'
leaders, particularly when they are duly-elected democratic leaders."
Kennedy said Delahunt has been working with Chávez ''for
years now and has gone down there many times and developed a personal
relationship with him."
Chávez has used his influence in the global market before.
In August, he offered discounted home-heating oil to poor communities
in the United States after meeting in Caracas with the Rev. Jesse
Jackson.
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