VENEZUELAN HYDROCARBONS: AN OPPORTUNITY FOR PRIVATE INVESTMENT The abundance of natural resources gives a definitive advantage. A large internal and nearby market for G&S, with ample advantages for business in nearby countries. A realistic, focused on development, and substantial development plan in Venezuela for the coming years. Plans to use and develop a strong local G&S sector. A modern legal framework in place. A large diversity of clients. The abundance of natural resources gives a definitive advantage. A large internal and nearby market for G&S, with ample advantages for business in nearby countries. A realistic, focused on development, and substantial development plan in Venezuela for the coming years. Plans to use and develop a strong local G&S sector. A modern legal framework in place. A large diversity of clients. A large number of established local business and businessmen with knowledge of the local conditions, willing to take risks, to invest and to form Joint Ventures. The facts:

THE CONCEPT Textbook Conditions for Development Large Internal Market, large external opportunities Demanding Market to international standards Highly competitive Supply & Demand Large Expansion plan O&G Location Program & Policies in place THE OBJECTIVE: DEVELOP G&S CLUSTERS FOR THE LOCAL MARKET AND FOR EXPORT

STRATEGY OF THE LOCAL PRIVATE SECTOR Develop current properties to their full potential. Identify new opportunities. Develop associations with local and international players. Increase capitalization (strategic partnerships, capital markets). Export. Develop current properties to their full potential. Identify new opportunities. Develop associations with local and international players. Increase capitalization (strategic partnerships, capital markets). Export.

THE CONCEPT: TO ADD STENGTHS JV & Alliances of Local and Foreign companies. The establishment in Venezuela of new joint companies. Technology transfer agreements. Cooperation agreements. Promoting:

Strategic joint ventures, with foreign companies, are highly encouraged as policy to establish synergic relationships, integrating the skills, experiences and strengths of each partner under a gain-gain approach to develop the Venezuelan and the export markets. JV’s in Venezuela make business sence

BENEFITS TO THE PARTNERS Joint Benefits Foreign Partner Local Partner Privileged, access to strong Venezuelan and near by market to their product services and technology Opportunity for growth. Access to larger markets. Secure better competitive positions. Expansion of service offerings and integration of competencies. Broader base of experienced management. Financial benefits: Lower financial risk. Access to investment capital. Shared (reduced) marketing costs. Lower production and operating costs, improved use of resources. Reduced Risks. Access to new technologies and areas of activity Growth capacity  Share Holder Value Creation

JV AND ALLIANCES SCHEMES JV SCHEMES Value added product representations Cooperation agreements with existing companies Technology transfer / New development agreements Investing in ongoing business for technological and operational improvements, expansions or new product development Investing in new business or facilities Value added product representations Cooperation agreements with existing companies Technology transfer / New development agreements Investing in ongoing business for technological and operational improvements, expansions or new product development Investing in new business or facilities Identification of interest Organized workshops MOU Joint market analysis and development JV commitment Commitment to invest Identification of interest Organized workshops MOU Joint market analysis and development JV commitment Commitment to invest JV EVOLUTION Strategy First, Deal Making Second

WHY VENEZUELA: CONFIDENCE AND COMPETITIVINESS Most prolific hydrocarbon region outside of the middle east Attractive Geographic Location. A strong, long established and demanding industry based on international standards, with a competitive supply sector. More than twenty private oil companies operate in Venezuela ranging from large multinational to small local companies. A free market economy subscribed to the WTO. Substantial development plan for the coming years. A tradition of respect to private investment. A modern legal framework. The right attributes to develop competitive advantages

THE ROAD AHEAD The process will continue, the opportunities are there. Objective: Identify business areas of mutual interest. Emphasis on: Schemes: > Gas > Manufacturing of G&S > Refinery> Supply of G&S > Alliances > Petrochemicals> Operation > Investment > Use of Refinery Streams> Technology Transfer> Financing The process will continue, the opportunities are there. Objective: Identify business areas of mutual interest. Emphasis on: Schemes: > Gas > Manufacturing of G&S > Refinery> Supply of G&S > Alliances > Petrochemicals> Operation > Investment > Use of Refinery Streams> Technology Transfer> Financing Focus on development and creation of value

Small business enterprises Hospital and School support Training and Formation Educational and Health Programs Social Training Plans Human development projects The Venezuelan oil private sector is committed to the development of the country and understands that this development has to reach all Venezuelans. We understand our responsibility to create well paid, sustained and productive employment as the long term solution to the problems that impair our society today. But we also understand that the actual situation does not permit us to sit and wait for the long term. Today we are active and committed, the Chamber promotes and stimulates Social Responsibility as Corporate Strategy, integrating efforts with contributions in social investment and sustainable development directed to the areas of: