MIRA INFORM REPORT

Report Date :

29.11.2013

IDENTIFICATION DETAILS

Name :	PDVSA PETROLEO S.A.
Formerly Known as:	PDVSA PETROLEO Y GAS S.A.
Registered Office :	Libertador, Edif. Petróleos de Venezuela, Torre Oeste, La Campiña, Caracas
Country :	Venezuela
Financials (as on) :	31.12.2012
Date of Incorporation :	16.11.1978
Com. Reg. No.:	Nº 26, Volume 127-A. File Nº 105.846
Legal Form :	Joint-Stock Company
Line of Business :	Development, refining, exploration, exploitation, transportation, production, commercialization, supply and services for the oil industry, and other hydrocarbons.
No. of Employees :	16,000

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30th, 2013

Country Name	Previous Rating (30.06.2013)	Current Rating (30.09.2013)
Venezuela	B2	B2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Venezuela ECONOMIC OVERVIEW

Venezuela remains highly dependent on oil revenues, which account for roughly 95% of export earnings, about 45% of federal budget revenues, and around 12% of GDP. Fueled by high oil prices, record government spending helped to boost GDP growth by 4.2% in 2011, after a sharp drop in oil prices caused an economic contraction in 2009-10. Government spending, minimum wage hikes, and improved access to domestic credit created an increase in consumption which combined with supply problems to cause higher inflation - roughly 26% in 2011 and 21% in 2012. President Hugo CHAVEZ's efforts to increase the government's control of the economy by nationalizing firms in the agribusiness, financial, construction, oil, and steel sectors have hurt the private investment environment, reduced productive capacity, and slowed non-petroleum exports. In the first half of 2010 Venezuela faced the prospect of lengthy nationwide blackouts when its main hydroelectric power plant - which provides more than 35% of the country's electricity - nearly shut down. In May 2010, CHAVEZ closed the unofficial foreign exchange market - the "parallel market" - in an effort to stem inflation and slow the currency's depreciation. In June 2010, the government created the "Transaction System for Foreign Currency Denominated Securities" to replace the "parallel" market. In December 2010, CHAVEZ eliminated the dual exchange rate system and unified the exchange rate at 4.3 bolivars per dollar. In January 2011, CHAVEZ announced the second devaluation of the bolivar within twelve months. In December 2010, the National Assembly passed a package of five organic laws designed to complete the transformation of the Venezuelan economy in line with CHAVEZ's vision of 21st century socialism. In 2012, Venezuela continued to wrestle with a housing crisis, high inflation, an electricity crisis, and rolling food and goods shortages - all of which were fallout from the government's unorthodox economic policies. The budget deficit for the entire government reached 17% of GDP in 2012, and public debt as a percent of GDP climbed steeply to 49%, despite record oil prices.

Source : CIA

IDENTIFICATION
CORRECT COMPANY NAME	PDVSA PETROLEO S.A.
TAXPAYER REGISTRATION	RIF J001230726
MAIN ADDRESS	Libertador, Edif. Petróleos de Venezuela, Torre Oeste, La Campiña
DEPT/PROV/REGION/STATE	Caracas
COUNTRY	VENEZUELA
TELEPHONE	(58212) 7081111
WEB	www.pdvsa.com
COMMENTS
Notice the correct name and address of the Company are as above written. No telephone number was given on your order.

EXECUTIVE SUMMARY

Date of foundation		1978
Capital stock		BsF.1,464,310,143.69 Bolívares Fuertes
permanent employees		16,000
Chief Executive		RAMIREZ CARREÑO, RAFAEL DARIO
Disposition		TF: REPORT PREPARED FROM OUTSIDE SOURCES.
Payments policy		Usually to terms / good
Number of times that this company was required: 5
LEGAL STRUCTURE
LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	16NOV1978
PLACE OF REGISTRY	Caracas (Registry of Companies II)
NOTARY OFFICE		DURATION	50 years
REGISTRATION	Nº 26, Volume 127-A. File Nº 105.846
INITIAL CAPITAL	Bs.10,000,000.= Bolívares
CURRENT PAID-IN CAPITAL	BsF.1,464,310,143.69 Bolívares Fuertes	LAST CAPITAL INCREASE	09.05.2001 (Nº 23, Volume 81-A)
CURRENT EXCHANGE RATE (US$)	BsF.6.30 per USD.1.00
COMMENTS
Charter Member: The current shareholder. It was initially incorporated under the name CORPOVEN S.A. As a result of the merger with Maraven and Lagoven, dated 30/12/1997, the Company changed name to PDVSA PETROLEO Y GAS S.A., and on 09/05/2001, it changed again to the current name. Capital stock reduced from the sum of Bs.1,753,840,143.695.= Bolívares The Board of Directors was appointed on 20/01/2005. No new appointments and/or ratification were observed. In 2008, currency conversion came into effect in Venezuela, under which, three zeros are deleted from the old Bolívar (Bs.).

DIRECTORS

EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
RAMIREZ CARREÑO, RAFAEL DARIO	President
VIERMA PEREZ, LUIS FELIPE	Director
GRANADO RAVELO, ALEJANDRO	Director
DEL PINO DIAZ, EULOGIO ANTONIO	1st Alternate Director
CARRUYO RONDON, EUDOMARIO	2nd Alternate Director
PETROLEOS DE VENEZUELA S.A.	Majority Shareholder (Parent Company)	100%

WHO IS WHO?

RAMIREZ CARREÑO, RAFAEL DARIO

TITLE

President

NATIONALITY

Venezuelan

ID

CI 5479706

BACKGROUND INFORMATION

Currently, he is the Minister of Energy and Oil.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
PETROLEOS DE VENEZUELA S.A.	President	J000950369	VENEZUELA

VIERMA PEREZ, LUIS FELIPE

TITLE

Director

NATIONALITY

Venezuelan

ID

CI 3587062

GRANADO RAVELO, ALEJANDRO

TITLE

Director

NATIONALITY

Venezuelan

ID

4271490

DEL PINO DIAZ, EULOGIO ANTONIO

TITLE

1st Alternate Director

NATIONALITY

Venezuelan

ID

CI 11041914

BACKGROUND INFORMATION

His specific position in PETROLEOS DE VENEZUELA SA is Vice President of Exploration and Production.
 
Geophysical Engineer, graduated from Universidad Central de Venezuela (UCV) in 1979, with a Master's degree in Exploration from Stanford University (USA) in 1985. 
 
He began his career in the Venezuelan oil industry in the research and development subsidiary of PDVSA (Intevep) in 1979 holding different technical and supervisory positions until 1990, when he accepted the position of Technical Manager for Latin America in Western Atlas. 
 
He returned to PDVSA in 1991, in the company Corpoven, where he assumed various managerial positions, and as from 1997 he held positions like Manager of Exploration and Delineation at PDVSA, to accept in 2001 to restart the Offshore Exploration Campaign by PDVSA in the Deltana Platform. 
 
Later in 2003, he was appointed General Manager of strategic partnerships in the Venezuelan Petroleum Corporation, representing PDVSA in the strategic partnerships of the Orinoco Oil Strip in 2004 and was appointed Director of PDVSA CVP. 
 
In addition, Mr. Del Pino has been Chairman and Vice Vhairman of the Geophysical Association of Venezuela (1990-1994), Vice Chairman of the International Geophysical Society (1996-1997) and Founder and Coordinator for the Latin American Geophysicians Union.
 
He has been part of the PDVSA's Board of Directors as Internal Director since January 2005.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
CORPOGUANIPA S.A.	Director		VENEZUELA
PDVSA CERRO NEGRO S.A.	President		VENEZUELA
PDVSA SINCOR S.A.	President	J0001230726	VENEZUELA
PETROLERA ZUATA C.A.	Director	J303645747	VENEZUELA
CORPORACION VENEZOLANA DEL PETROLEO S.A.	President	J000925046	VENEZUELA
PETROLEOS DE VENEZUELA S.A.	Director	J000950369	VENEZUELA

CARRUYO RONDON, EUDOMARIO

TITLE

2nd Alternate Director

NATIONALITY

Venezuelan

ID

CI 3113881

BACKGROUND INFORMATION

Public Accountant. Graduate from Universidad de Zulia (LUZ) in 1972. He has followed several postgraduate specialization courses in Finance and Management, at Columbia University (New York, USA) and at University of Michigan (Ann Arbor, USA). 
 
He has 40 years experience in the national petroleum and petrochemical industry.

ASSOCIATED AS PER OUR DATABASE TO

COMPANY	TITLE	TAX REG	COUNTRY
CLORO VINILOS DEL ZULIA C.A.	Alternate Director		VENEZUELA
PDV MARINA S.A.		J003378372	VENEZUELA
PETROLEOS DE VENEZUELA S.A.	Director	J000950369	VENEZUELA

PETROLEOS DE VENEZUELA S.A.

BUSINESS BACKGROUND

This is a Venezuelan state-owned company that was incorporated in Caracas on 15/09/1975
It is an oil holding company that through its direct or indirect subsidiaries develops operations of exploration and production of crude oil and natural gas, as well as activities of processing, trading and transport of natural gas in Venezuela, the Caribbean, North America, South America, and Europe.
 
All of its shares are owned by the Venezuelan State, which is represented by the Ministry for Energy and Oil.
 
Over the last years, it has invested and participated in food and trade sectors.
It is related to:
BARIVEN, S.A. 
C.A. LA ELECTRICIDAD DE CARACAS S.A.C.A. 
CENTRO INTERNACIONAL DE EDUCACION Y DESARROLLO
CORPORACION VENEZOLANA DEL PETROLEO S.A. 
CORPOVEN S.A. 
DELTAVEN S.A. 
INTEVEP S.A. 
INVERSIONES MILAZZO C.A. 
LAGOVEN SA  
PDV MARINA S.A. 
PDVSA GAS S.A. 
PETROLEUM MARKETING INTERNATIONAL (PETROMAR) 
VENEZOLANA DE CEMENTOS S.A. 

BUSINESS HISTORY

The origins of the Company date back to year 1978, when CORPOVEN S.A. was founded.
 
On 22.12.1997 CORPOVEN SA merged with its sister companies: MARAVEN S.A. and LAGOVEN S.A., being Corpoven SA. the surviving entity.
 
At the same time, on that date, the name of the Company was changed to PDVSA PETROLEO Y GAS S.A.
 
On 09.05.2001, PDVSA PETROLEO Y GAS S.A. changed to the current name PDVSA PETROLEO S.A.
 
In June 2005, they resolved the creation of PDV CARIBE SA, to carry out activities related to hydrocarbons and byproducts, as well as other activities in the Caribbean.
 
Through its Parent Company, PDVSA PETROLEO S.A is related, among other, to the following companies:

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	TAX REG.	RELATION %
BARIVEN S.A.	VENEZUELA	(AC) J000925020	Related
BITUMENES DEL ORINOCO S.A.	VENEZUELA		Related
CARBONES DEL ZULIA S.A.	VENEZUELA	(AC) J303176739	Related
CITGO PETROLEUM COMPANY	U.S.A.		Related
CORPORACION VENEZOLANA DE PETROLEO S.A.	VENEZUELA		Related
DELTAVEN S.A.	VENEZUELA		Related
INTEVEP S.A.	VENEZUELA	(AC) J001108483	Related
PALMAVEN S.A.	VENEZUELA		Related
PDV MARINA S.A.	VENEZUELA	(AC) J003378372	Related
PETROLERA ZUATA C.A.	VENEZUELA	(AC) J303645747	Related
PETROQUIMICA DE VENEZUELA S.A.	VENEZUELA	(AC) G200001070	Related

BUSINESS

Main activity

Development, refining, exploration, exploitation, transportation, production, commercialization, supply and services for the oil industry, and other hydrocarbons.
 
It is a subsidiary of PETROLEOS DE VENEZUELA SA PDVSA, which centralizes most of the activities of exploration, production and refining of crude oil and products in the country, as well as its commercialization and supply in the domestic market and abroad.
 
The three Divisions include:
- PDVSA Division of Exploration & Production: Development of the above products. Research activities. In turn, this division is formed by the business units: PDVSA Exploracion, PDVSA Faja, Bitor-Carbozulia and Corporacion Venezolana de Petroleo.
 
- PDSA Division of Manufacture & Marketing: Refining of crude, as well as production of byproducts and trade and supply in the domestic market and abroad. Besides, it is engaged in the commercialization of natural gas and meets sea transport functions. This division is formed by PDVSA Refinacion y Comercio, Deltaven, PDVSA Marina.
 
- PDVSA Division of Services: Responsible for supplying of integrated, specialized & competitive service to all the Corporation. This division is made up of PDVSA Ingenieria y Proyectos, Bariven, PDVSA Administración y Servicios, Consultoría Jurídica, Recursos Humanos, Finanzas y Asuntos Públicos.
 

OPERATIONS

Import

Yes

EMPLOYEES

16,000

LOCATION
OTHER PREMISES	Head offices, manufacture division and marketing are located at the above address. Premises are owned by the Company. They consist of 12 floors, large rooms, kept in good condition, located next to the tower of the Parent Company, highly transited avenue, commercial area of the city. It also has other commercial offices in the city of Punto Fijo, State of Falcón.

Comments

The numbe of employees is at corporate level.

FINANCIAL INFORMATION

Disposition	REPORT PREPARED FROM OUTSIDE SOURCES.
Information provided	This is a state-owned Company engaged in strategic industry for the development of the country, hence, access to information is restricted. We got information through communiqués, press releases, web site of the holding and public. PETROLEOS DE VENEZUELA S.A.'s related companies as well as PDVSA PETROLEO S.A. do not publish financial statements. Therefore, we only include for reference purposes, the Consolidated Balance Sheet of PETROLEOS DE VENEZUELA S.A. and its subsidiaries, including PDVSA PETROLEO S.A., as of December 31, 2012, expressed in Million Dollars. Through Internet, found out that the holding has reached income for US$.10,757 Million Dollars between January and April of the present year, mainly because of the sales made by the Company.
Comments

DATE OF BALANCE SHEET : 31DEC2012 
TYPE OF BALANCE SHEET : Consolidated 
PERIOD : 12 months
CURRENCY : US$ Dollar 
EXCHANGE RATE PER US$ : 6.30 
 
 ASSETS
 CASH/BANKS : 8,233,000.00 
 RECEIVABLES : 41,706,000.00 
 INVENTORY : 11,606,000.00 
 OTHER : 13,337,000.00 
 TOTAL CURRENT : 74,882,000.00 
 FIXED : 115,905,000.00 
  OTHER : 27,637,000.00 
 TOTAL ASSETS : 218,424,000.00 
 LIABILITIES
 BANKS/SUPPLIERS : 16,747,000.00 
 OTHER : 54,313,000.00 
 TOTAL CURRENT : 71,060,000.00 
 LONG-TERM : 71,536,000.00 
 SHAREHOLDERS'EQUITY : 
 CAPITAL : 39,094,000.00 
 PROFIT (LOSS) : 36,734,000.00 
 TOTAL SHAREH.'EQUITY : 75,828,000.00 
 TOTAL LIAB./SH. EQUITY : 218,424,000.00 
 
 SALES : 124,459,000.00 
 PROFIT (LOSS) : 4,215,000.00 
 
 RATIOS
 LIQUIDITY RATIO : 1.05 (Current Assets/Current Liabilities)
 DEBT-TO-EQUITY RATIO: 106.71% (Shareholders' equity/ Current Liabilities %)
 PROFITABILITY : 3.39% (Profit/Sales %)

WORKING CAPITAL : 3,822,000.00 (Current Assets-Current Liabilities)

SALES	US$ 0.00 ()
FINANCIAL SITUATION	A-: SATISFACTORY The Company is economically supported by its owners. It is publicly known that the Company operates without problems. It fulfills its obligations satisfactorily.

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Note : Other suppliers did not provide information or could not be consulted

Supplier	Country
3M MANUFACTURERA VENEZUELA	VENEZUELA
ASEA BROWN BOVERI	VENEZUELA
CALIDRAT	VENEZUELA
CHEM CRESS	VENEZUELA
DE WITT CHEMICAL	VENEZUELA
DRESSER RAND DE VENEZUELA	VENEZUELA
GTME DE VENEZUELA	VENEZUELA
MESSES SOLDADURAS	VENEZUELA
TECNOCONSULT	VENEZUELA

Comments :

BANCO VENEZOLANO DE CRÉDITO Account: No. 029-13577 Further information was not given. It was a client of BANCO DE VENEZUELA, but the account was cancelled.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.39
UK Pound	1	Rs.101.80
Euro	1	Rs.84.75

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.