business plan 2004 - 2009 1 pc2004_06 washington_f.r._june 22_b

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

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

Agenda

2PC2004_06 Washington_F.R._June 22_b


Natural Resources


Exploration Activities

20042004

170 MM$

43 MM$

ExplorationBudge

SeismicTotal

ExplorationInvestment

Seismic

ExploratoryRigs

ExploratoryRigs

9

Seismic 3D Seismic 2D Seismic 3DIncorporated Reserves

(MMMBls)

2004 2009

3

2004 2009

0.9

5.7

3,600 Km

18300 Km2 1,970 Km2

Bussines PlanBussines Plan

2,250 MM$

655 MM$



0

500

1.000

1.500

2.000

2.500

3.000

3.500

31 31 30

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

Th

ou

sa

nd

bar

rels

pe

r d

ay

25 ThBDDec 31st, 2002

2,912 ThbdDec 1st, 2002

3,303 ThbdDec 31th, 2003

2002 2003 2004

3,151 ThbdMay 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 BeltAsociations

Crude Oil Evolution


On Going Business

3.15 mbd Production Distribution

3.15 mbd Production Distribution

65%

18%17%

2003

Orinoco Belt

Own operation

Decline factorDecline factor

20042002

?

23%22%

Operating agreement

Tech deployment

It is a trend?

2-3 $/bl 2-3 $/bl

PDVSA

Operating costOperating cost

26%

45%

Now Tomorrow

Average recovery factorAverage recovery factor

New tech

Integrated asset

management

2th, 3th

Recovery

“Pushing to the edge”“Pushing to the edge”

3.5 mbd

Production Capacity

PDVSA

2004 2009



Oil production capacity (Thbd)

Total Investment: $37 Bn------ 70 % Upstream= $ 26 Bn

2,545

3,6002,760

3,190

620

615

530

610

605 670670

67010060

240

0

1000

2000

3000

4000

5000

6000

2004 2005 2006 2007 2008 2009

Own Operations Operating Agreements

Orinoco Belt Profif Sharing Agreements

3,7604,105

4,5805,040

Proven

Reserves

Development

based


Operational activity

7379

102

114120

907

2,1371,953

1,780

1,030

0

20

40

60

80

100

120

140

2002 2003* 2004 2005 2006

Rig

s

0

500

1000

1500

2000

2500

Wel

ls

Rigs Wells

* Year strongly affected by the oil stoppagePDVSA + 3rd. Parties new wells and rehabs

Average Rigs in the Business Plan: 120

40% to New Wells

60 % to Workovers

Average Rigs in the Business Plan: 120

40% to New Wells

60 % to Workovers


• 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


• Orinoco Belt - East Venezuela

- H/XH crude oil to high quality products

- New projects

• Corocoro

- Profit Sharing agrement


• East Venezuela Traditional Area

- C/L/M-X/XH crude oil


• West Venezuela Traditional Area

- C/L/M -H/XH crude oil


• 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


Gas...Top projects

• Anaco Gas-East Venezuela

- Gas production


• ICO: East-West Venezuela

- Gas interconnection


• Jose 250 NGL

- 1 Train (31 ThBD)


• Western Cryogenic Complex (CCO)

- 1 Train of liquefaction (800 mCFD)


• Anaco Gas-East Venezuela

- Gas production


• ICO: East-West Venezuela

- Gas interconnection


• Jose 250 NGL

- 1 Train (31 ThBD)


• Western Cryogenic Complex (CCO)

- 1 Train of liquefaction (800 mCFD)


• Mariscal Sucre (2009)

- 1 Train of liquefaction (4.7 mMt)


• Plataforma Deltana (2009)



• CIGMA-East Venezuela

- Gas industrial complex & terminals


• Mariscal Sucre (2009)



• Plataforma Deltana (2009)



• CIGMA-East Venezuela

- Gas industrial complex & terminals



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:


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

SourcesCOMPETITIVENESSLEVEL

2004 2005 2006 2007 2008 2009

Accelerated approach

Business as usualapproach

REQUIRED

EARLY EXPECTED RESULTS

CUURENT

FirstGoal


Some examples of Technology Application by Intevep

ISAL

UPSTREAM

DOWNSTREAM

AQUACONVERSION

Technology

Visualization 3D roomsCompositional simulation modelsReal Time reservoir management Situational rooms

LGN

LGNRecovery

CRUDE8 °API

MIS

Separating Gas-

Liquid Crude 20° API


Board of DirectorsPresident

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 ...PDVSA organised geographically and directed / co-ordinated by process ...

OOPPEERRAATTIIOONNSS

TacticTactic

StrategicStrategic

New Organisational Structure


PDVSA Financial Highlights

Update on PDVSASource: PDVSA

1.817

725744

843

560617

321

187

882

361

2981

233192

2963 75

27 - - 3 20 41

195200

297

25 - 2563

$0

$250

$500

$750

$1.000

$1.250

$1.500

$1.750

$2.000

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

Hist. Amortizations

PDVSA

PDVSA Finance

1.359

Duration:Duration: 7.2 years7.2 years

Average Interest Rate: Average Interest Rate: 6.96%6.96%

PDVSA Debt Amortization ProfileUS$ in Millions

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

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