1. Business Plan 2004 - 2009 1 PC2004_06 Washington_F.R._June 22_b

2. 2 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b Agenda 2 PC2004_06 Washington_F.R._June 22_b

3. 3 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b Natural Resources

4. 4 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b Exploration Activities 2004 170 MM$ 43 MM$ Exploration Budge Seismic Total Exploration Investment Seismic Exploratory Rigs Exploratory Rigs 9 Seismic 3D Seismic 2DSeismic 3D Incorporated Reserves (MMMBls) 20042009 3 20042009 0.9 5.7 3,600 Km 18300 Km 2 1,970 Km 2 Bussines Plan 2,250 MM$ 655 MM$ 4 PC2004_06 Washington_F.R._June 22_b

5. 5 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b 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 200220032004 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

6. 6 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b 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 PDVSA Operating cost 26% 45% Now Tomorrow Average recovery factor New tech Integrated asset management 2 th, 3 th Recovery “Pushing to the edge” 3.5 mbd Production Capacity PDVSA 20042009 6 PC2004_06 Washington_F.R._June 22_b

7. 7 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b Oil production capacity (Thbd) Total Investment: $37 Bn------ 70 % Upstream= $ 26 Bn 3,760 4,105 4,580 5,040 Proven Reserves Development based

8. 8 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b Operational activity * Year strongly affected by the oil stoppage PDVSA + 3rd. Parties new wells and rehabs Average Rigs in the Business Plan: 120 ä 40% to New Wells ä 60 % to Workovers Average Rigs in the Business Plan: 120 ä 40% to New Wells ä 60 % to Workovers

9. 9 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b 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 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 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

10. 10 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b 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 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 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

11. 11 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b ä Enhancement of refining margin: Venezuela & Overseas ä Expansion of deep conversion capacity: - Upgrading and expanding existing refineries ä Building-up refining capacity: - Venezuela - Out Venezuela: Ex Latin America & The Caribbean ä Industrialization of refining streams: - Specialties - High quality white Products Downstream - Refining H Caring about Customers by meeting quality regulations H Portfolio optimization:

12. 12 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b 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 l Balancing our own resources l Contracting from Domestic / Foreign Sources COMPETITIVENESS LEVEL 200420052006200720082009 Accelerated approach Business as usual approach REQUIRED EARLY EXPECTED RESULTS CUURENT First Goal

13. 13 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b Some examples of Technology Application by Intevep ISAL UPSTREAM DOWNSTREAM AQUACONVERSION Technology ä Visualization 3D rooms ä Compositional simulation models ä Real Time reservoir management ä Situational rooms LGN Recovery CRUDE 8 °API MIS Separating Gas- Liquid Crude 20° API

14. 14 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b 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... OPERATIONS Tactic Strategic New Organisational Structure

15. 15 Business Plan 2004 - 2009 PC2004_06 Washington_F.R._June 22_b 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

16. Business Plan 2004 - 2009 16 PC2004_06 Washington_F.R._June 22_b 16 PC2004_06 Washington_F.R._June 22_b