felix rodriguez

Slide2: 

Agenda 2 PC2004_06 Washington_F.R._June 22_b

Natural Resources: 

Natural Resources

Slide4: 

Exploration Activities 2004 170 MM$ 43 MM$ Exploration Budge Seismic Total Exploration Investment Seismic Exploratory Rigs 9 Seismic 3D Seismic 2D Seismic 3D Incorporated Reserves (MMMBls) 2004 2009 3 2004 2009 0.9 5.7 3,600 Km 18300 Km2 1,970 Km2 Bussines Plan 2,250 MM$ 655 MM$ 4 PC2004_06 Washington_F.R._June 22_b

Slide5: 

What happened last year and where is PDVSA today? NOV DEC JAN FEB MAR ABR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR ABR MAY Thousand barrels per day 25 ThBD Dec 31st, 2002 2,912 Thbd Dec 1st, 2002 3,303 Thbd Dec 31th, 2003 2002 2003 2004 3,151 Thbd May 31th, 2004 1 Nov 2002 31 May 2004 Production figures include condensates but do not include NGL and H/XH as Orimulsion®, which add up to: 3.3 Thbd - GAS Production for the same period: 6.2 BnCFD It took only three months to recover production up to regular levels Own Effort Operating agreements Orinoco Belt Asociations Crude Oil Evolution

On Going Business: 

On Going Business 3.15 mbd Production Distribution 65% 18% 17% 2003 Orinoco Belt Own operation Decline factor 2004 2002 ? 23% 22% Operating agreement Tech deployment It is a trend? 2-3 $/bl 2-3 $/bl PDVSA Operating cost 26% 45% Now Tomorrow Average recovery factor New tech Integrated asset management 2th, 3th Recovery “Pushing to the edge” 3.5 mbd Production Capacity PDVSA 2004 2009 6 PC2004_06 Washington_F.R._June 22_b

Oil production capacity (Thbd): 

Oil production capacity (Thbd) Total Investment: $37 Bn------ 70 % Upstream= $ 26 Bn 3,760 4,105 4,580 5,040 Proven Reserves Development based

Operational activity: 

Operational activity * Year strongly affected by the oil stoppage PDVSA + 3rd. Parties new wells and rehabs

Exploration and Production...Top projects: 

Corocoro - Profit Sharing agrement - Investment $ 400 m East Venezuela Traditional Area - C/L/M-X/XH crude oil - Investment $ 5.8 Bn West Venezuela Traditional Area - C/L/M -H/XH crude oil - Investment $ 2.2 Bn Orinoco Belt - East Venezuela - H/XH crude oil to high quality products - New projects Exploration and Production Tacata Field-East Venezuela - C/L crude oil and free gas - Investment $ 390 m Deep Furrial-East Venezuela - C/L crude oil - Investment $ 315 m Chaguaramal-East Venezuela - C/L crude oil - Investment $ 425 m Tomoporo-West Venezuela - Medium crude oil - Investment $ 825 m New Exploration bidding round - Western Venezuela - First half of 2004 Exploration and Production...Top projects

Gas...Top projects: 

Gas...Top projects Anaco Gas-East Venezuela - Gas production - Investment $ 360 m ICO: East-West Venezuela - Gas interconnection - Investment $ 350 m Jose 250 NGL - 1 Train (31 ThBD) - Investment $ 860 m Western Cryogenic Complex (CCO) - 1 Train of liquefaction (800 mCFD) - Investment $ 500 m Mariscal Sucre (2009) - 1 Train of liquefaction (4.7 mMt) - Investment $ 2.7 Bn Plataforma Deltana (2009) - 1 Train of liquefaction (6.5 mMt) - Investment $ 3.9 Bn CIGMA-East Venezuela - Gas industrial complex & terminals - Investment $ 250 m

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Enhancement of refining margin: Venezuela & Overseas Expansion of deep conversion capacity: Upgrading and expanding existing refineries Building-up refining capacity: Venezuela Out Venezuela: Ex Latin America & The Caribbean Industrialization of refining streams: Specialties High quality white Products Downstream - Refining Caring about Customers by meeting quality regulations Portfolio optimization:

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Human Resources Strategies We are carrying out accelerated strategies to close competitiveness gaps in critical process to assure Business Plan viability Tutorial enhanced developing program Hiring expert professionals in core critical process Balancing our own resources Contracting from Domestic / Foreign Sources COMPETITIVENESS LEVEL 2004 2005 2006 2007 2008 2009 Accelerated approach Business as usual approach REQUIRED EARLY EXPECTED RESULTS CUURENT First Goal

Slide13: 

Some examples of Technology Application by Intevep ISAL UPSTREAM DOWNSTREAM AQUACONVERSION Technology Visualization 3D rooms Compositional simulation models Real Time reservoir management Situational rooms

Slide14: 

Board of Directors President 3 Vice-presidents 7 Directors Organisations Staff Other businesses Manager East Manager South-Centre Manager West Committees: Human Resources / Social Development / Business & Planning /Operational PDVSA organised geographically and directed / co-ordinated by process ... O P E R A T I O N S Tactic Strategic New Organisational Structure

PDVSA Financial Highlights: 

PDVSA Financial Highlights Update on PDVSA Source: PDVSA 1.359 Duration: 7.2 years Average Interest Rate: 6.96% PDVSA Debt Amortization Profile US$ in Millions

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16 PC2004_06 Washington_F.R._June 22_b