Case 7 Petrozuata

Exhibit 1 Venezuelan Macroeconomic Data: 1970-1996 Real GDP Per Capita Government Growth GDP Growth Surplus / GDPa 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

7.30% 2.4 2.5 6.1 5.2 5.1 8.3 6.2 2.2 1.3 -2.5 -0.2 0.8 -5.2 -0.5 1.1 6.2 4.5 6.2 -8.5 7.5 10.1 7.4 -0.6 -2.5 3.7 -0.4

3.70% -1 -1 2.5 1.7 1.5 4.6 2.5 -1.3 -2 -5.5 -3 -1.8 -7.5 -2.9 -1.4 3.5 1.7 3.4 -10.8 4.9 7.5 4.9 -2.8 -4.6 1.5 -2.5

-0.90% 0.5 -0.2 1.6 2.4 0.6 0.5 -4.4 -3.6 2.1 0 2.2 -2.1 -0.6 2.8 2 -0.4 -1.7 -6.1 -1.1 -2.1 -1.4 -3.8 -2.5 -6.8 -4.6 0.2

Total Debt Stock / GDP

6.90% 12.7 15.2 14 8.6 6.8 13.3 25.1 35.7 42.2 42 41 40.2 48.1 63.8 59 56.4 73.8 57.5 75.6 68.3 63.8 62.4 62.2 62.6 46 49.9

Oil Exports / Oil Exports / Total Exports GDP

89.00% 92.2 91.4 88.6 95.2 94.6 94.2 95.4 95.1 95.2 94.9 94.6 94.7 91.3 87.7 82.6 69.2 81.8 76.4 74.9 80 81.1 79 74.7 72.7 74.4 80.4

17.20% 19 17.3 21.6 33.4 25.6 23.6 21.3 18.8 23.9 26.2 24.3 19.5 17.4 21 17.3 10.9 14.9 13.5 23.4 29.2 23.1 18.7 18 20.2 17.9 26.7

Sources: Inter-American Development Bank; and International Financial Statistics , International Monetary Fund. a Negative values signify Government Deficit/GDP. b The interest rates provided are yields to maturity on long-term Venezuelan government bonds.

c The exchange rates provided are the official bolivar/US dollar exchange rates determined by the Venezuelan government. Prior to 1989 and between 1994 and early 1996, th fixed the exchange rate. Between 1989 and 1994 and after early 1996, the government allowed the bolivar to float freely against the US dollar.

Unemployment Rate

Inflation Rate

Interest Ratesb

Exchange Ratec

7.80% ... ... ... 7.6 8.3 6.8 5.5 5.1 5.8 6.6 6.8 7.8 11.2 14.3 14.3 12.1 9.9 7.9 9.7 11 10.1 8.1 6.8 8.9 10.9 12.3

2.50% 3.2 2.8 4.1 8.3 10.3 7.6 7.8 7.1 12.4 21.5 16.2 9.6 6.3 12.2 11.4 11.5 28.1 29.3 84.7 40.6 34.2 31.4 38.1 60.8 59.9 99.9

... ... ... ... ... ... ... ... ... ... ... ... ... ... 13.15% 12.55 12.07 13.49 14.86 17.32 20.06 27.14 31.66 41.03 54.73 53.38 49.09

4.45 4.35 4.35 4.285 4.285 4.285 4.293 4.293 4.293 4.293 4.293 4.293 4.293 4.3 7.5 7.5 14.5 14.5 14.5 43.079 50.38 61.554 79.45 105.64 170 290 476.5

r to 1989 and between 1994 and early 1996, the government

Exhibit 2 DuPont and PDVSA Balance Sheets (US dollars in millions): 1995-1996 DuPont

PDVSA

1996

1995

1996

1995

$1,319 5,193 3,706 297 588 $11,103 $21,213 2,278 3,393 $37,987

$1,455 4,912 3,737 276 575 $10,955 $21,341 1,846 3,170 $37,312

$2,745 3,429 1,740 1,124 508 $9,546 $32,957 1,863 1,036 $45,402

$464 3,226 1,551 729 429 $6,399 $30,774 1,899 853 $39,925

$2,757 300 3,610 526 3,794 $10,987

$2,636 $2,033 $1,672 551 1,137 1,074 5,606 ----470 2,616 351 3,468 1,156 952 $12,731 $6,942 $4,049

$4,983 104 2,133 8,451 $26,658

$5,572 106 1,783 8,454 $28,646

$4,668 455 19 1,166 $13,250

$4,933 531 313 1,168 $10,994

$620 10,709 $37,987

$230 8,436 $37,312

$354 31,798 $45,402

$271 28,660 $39,925

Assets Cash Accounts and notes receivable Inventory Prepaid expenses Deferred income taxes Total current assets Property, plant, and equipment Investment in affiliates Other assets Total assets Liabilities and equity Accounts payable Current portion of long-term debt Short-term debt and lease obligations Income taxes Other accrued liabilities Total current liabilities Long-term debt Capital lease obligations Deferred income taxes Other liabilities Total liabilities Minority interests Total stockholders' equity Total liabilities and equity

Sources: DuPont 1996 Annual Report; and PDVSA 1996 Form 20-F.

Exhibit 3 DuPont and PDVSA Income Statements (US dollars in millions): 1995-1996 DuPont 1996 Sales Other income Total income Cost of goods sold Selling, general, and administrative expenses Depreciation, depletion, and amortization Exploration expenses Interest and debt expense Taxes other than on income

PDVSA 1995

1996

$ $ $

43,810 $ 1,340 $ 45,150 $

42,163 $ 1,059 $ 43,222 $

32,786 $ 1,069 $ 33,855 $

25,050 991 26,041

$ $ $ $ $ $

25,144 2,856 2,621 1,436 713 6,399

23,363 2,995 2,722 1,398 758 6,596

15,720 967 2,749 142 343 3,203 79 (89) 19 23,133

$ $ $ $ $ $ $ $ $ $

14,061 1,163 2,400 118 421 2,513 (354) (132) 23 20,213

10,722 $ (6,227) $ 4,495 $

5,828 (2,455) 3,373

$ $ $ $ $ $

Other expense (income), net

---

---

Equity earnings of affiliates

---

---

Minority interests

---

---

Total costs and expenses

$

39,169

Earnings before income taxes Net income

$ $ $

5,981 $ (2,345) $ 3,636 $

Earnings per share of common stock

$

6.47

$

5.61

Average number of common shares (millions)

$

560.7

$

585.1

Year-end stock price

$

34.94

$

47.06

Provision for income taxes

1995

$

37,832

$ $ $ $ $ $ $ $ $ $

5,390 $ (2,097) $ 3,293 $

Sources: DuPont 1996 Annual Report; and PDVSA 1996 Form 20-F.

Exhibit 4 Conoco and Maraven Financial Information (U.S. Dollars in millions): 1995-1996 Conoco 1996 Sales Operating profit Provision for income taxes Equity in earnings of affiliates After-tax operating income Identifiable assets Depreciation, depletion, and amortization Capital expenditures

Maraven 1995

1996

$ $ $ $ $

20,579 1,818 (933) (25) 860

$ $ $ $ $

17,958 $ 1,257 $ (660) 22 619 $

$ $ $

13,018 1,128 1,616

$ $ $

12,634 1,111 1,714

$ $ $

1995

5,503 3,574 na --1,070

$ $

10,814 940 612

$ $ $

$

4,073 1,924 na --(16) 10,093 770 1,871

Sources: DuPont 1996 Annual Report ; and PDVSA

Exhibit 7 Sources and Uses of Funds (US dollars in thousands): 1996-2000 1996

1997

1998

1999

2000

Uses Capital Expenditures Crude Oil Production Crude Oil Pipeline Upgrader & Loading Facilitya Upstream Contingency Total Capex

$ $ $ $ $

11,995 $ 191,849 $ 151,141 $ 77,092 $ 16,702 655 $ 170,512 $ 45,121 $ $ 14,345 $ 243,305 $ 510,987 $ 230,306 $ 67,912 $ $ $ $ 37,925 26,994 $ 605,666 $ 707,249 $ 307,399 $ 122,539

Other Costs Deferred Development Costs

$

52,040

$

23,328

$

71,724 $

-

$

-

and Operating Expenditures Initial Cash Balance Financing Costs Legal & Advisory Fees Debt Service Reserve Excess Cash Balance Total Uses

$ $ $ $ $ $

$ $ 10,000 $ 61,134 $ 86,816 $ 15,000 $ $ $ $ 47,213 $ 79,035 $ 752,341 $ 875,789

$ $ $ 94,955 $ 111,556 $ $ $ $ 80,865 $ $ 195 $ 402,353 $ 315,155

Sources Total Project Debt

$

-

$ 1,000,000

$

24,299

$ 242,981

$ 182,720

Shareholder Funds

Total Shareholder Funds

$ $ $ $

79,035 $ $ $ 79,035 $

Total Sources

$

79,035 $ 1,049,199

Initial Paid-in Capital Additional Paid-in Capital Operating Cash Flowb

Source: Petrozuata Planning Documents. a Includes a $139 million contingency. b Includes interest income.

$ $ 1,986 $ 550,148 $ (1,576) 47,213 $ 4,484 $ 160,948 49,199 $ 554,632 $ 159,373 $ 578,931

$ 402,353

$ $ (185,047) $ 317,481 $ 132,434 $ 315,155

Total

$ 448,780 $ 216,288 $ 1,066,854 $ 37,925 $ 1,769,847

$ 147,093 $ 10,000 $ 354,461 $ 15,000 $ 80,865 $ 47,408 $ 2,424,673

$ 1,450,000

$ 79,035 $ 365,511 $ 530,126 $ 974,673 $ 2,424,673

Exhibit 8 Oil and Gas Industry Comparables: 1996 (unless otherwise indicated) S&P Rating

Country

Country Rating

Debt to Value (%)

OIL & GAS PROJECTS Athabasca Oil Sands Canadian Oil Sands YPF Sociedad Anonima Ras Laffan (2001) Petrozuata (2001)

BBB BBB+ BBB BBB+ ???

Canada Canada Argentina Qatar Venezuela

AA+ AA+ BBBBBB B

26.80% 22.9 34.8 62.7 60

BBB ABBB BBB BBB BBB+

US US Canada US Canada Canada

AAA AAA AA+ AAA AA+ AA+

45.80% 37.9 41.9 54.1 49.6 30

AAA AA AAA AA A+ AA B

US US US US US Canada Venezuela

AAA AAA AAA AAA AAA AA+ B

26.60% 32 21 32.7 39.3 20.6 15.4

INDEPENDENT OIL COMPANIES Apache Burlington Resources Husky Oil Noble Affiliates Norcen Energy Resources Talisman Energy INTEGRATED OIL COMPANIES Amoco Chevron Exxon Mobil Texaco Shell Canada PDVSA

Sources: S&P Global Sector Review ; Bloomberg; and casewriter estimates.

Pretax Interest Coverage (X)

EBITDA/Interest (X)

Operating Income as a % of Revenue

Revenues ($ millions)

8.15X 8.62 4.77 4.51 4.7

11.09X 13.49 8.2 na 3.65

32.30% 30.7 44 51.1 79.4

$251.50 118.3 5,937.00 851.6 569.2

2.68X 3.7 2.66 4.49 1.49 4.54

5.85X 6.56 5.02 10.72 4.99 10.24

60.10% 62.6 39.7 46 42.2 59

$976.00 1,293.00 1,272.90 878.3 1,257.30 1,182.90

13.08X 9.85 10.25 11.73 5.68 6.57 32.26

21.22X 14.2 15.06 16.69 8.83 10.47 40.27

18.90% 16.9 13.8 11.9 10.1 19.7 48.7

$32,150.00 37,580.00 116,728.00 71,129.00 44,561.00 5,140.00 33,855.00

Exhibit 9 Credit Ratings for Selected Sovereign Foreign Currency Long-term Debta Moody’sb

S&Pb Sovereign

Dec. 1994

Dec. 1996

Dec. 1994

Dec. 1996

Institutional Investorc Sept. 1994

Sept. 1996

North America Canada Mexico United States

AA+ BB AAA

AA+ BB AAA

Aa1 Baa1 Aaa

Aa2 Ba2 Aaa

81.3 46.1 90.8

79.4 41.6 90.7

n/r n/r

n/r n/r

n/r n/r

n/r n/r

30.3 24.4

33.9 28.5

BBn/r B+ BBB+ n/r n/r n/r B+

BBn/r B+ ABBBn/r n/r B

B2 n/r B1 Baa2 n/r n/r n/r Ba2

B1 n/r B1 Baa1 Baa3 n/r B3 Ba2

37.3 21.4 30.3 54.9 44.4 24.5 21 36

38.9 25.4 38.3 61.2 46.7 26.4 30 32

Central America Costa Rica Panama South America Argentina Bolivia Brazil Chile Colombia Ecuador Peru Venezuela

Source: Bloomberg; and “Country Credit Ratings,” Institutional Investor , March 1995 and September 1996. a A foreign currency long-term debt rating is the rating agency’s assessment of each government’s capacity and willingness to repay its foreign currency denominated long-term debt according to the debt’s terms. n/r = not rated. b The following table provides a guide S&P’s and Moody’s ratings. Note that between ratings categories, there are modifiers: S&P uses two (+ and -); and Moody’s uses three (1, 2, and 3), where 1 is the highest rank.

Investment Grade

S&P

Moody’s

AAA

Aaa Aa A Baa Ba B Caa Ca C

AA A BBB BB

Non-investment Grade

B CCC CC C

c Institutional Investor’s “Country Credit Ratings” were based on a survey of 75 to 100 international banks. Bankers were asked to grade each country on a scale of 0 to 100, with 100 representing the least chance of default.

Exhibit 10a Petrozuata Equity Cash Flow Projections (US dollars in thousands)

Year

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Forecast Price of Syncrude

$12.25 12.56 12.87 13.19 13.52 13.86 14.21 14.56 14.93 15.3 15.68 16.07 16.47 16.89 17.31 17.74 18.19 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64 18.64

Total Revenue

$0 0 78,524 429,059 804,108 569,156 583,597 598,398 613,568 629,117 645,052 661,386 678,126 695,283 712,869 730,892 749,365 768,299 768,798 769,309 769,831 770,365 770,911 771,468 781,859 782,441 783,036 783,644 784,266 784,901 785,550 786,214 786,891 787,584 788,291 789,014 789,753 790,508 791,279

Cash Available for Debt Service (CADS) Total Debt Service

$317,481 384,765 389,154 366,575 401,552 398,211 433,477 435,267 438,118 373,182 371,469 378,471 387,428 328,978 358,441 391,545 383,528 382,868 327,531 308,024 283,051 299,464 295,554 294,578 289,656 289,705 278,074 276,806 274,449 263,604 247,540 250,329 242,937 240,644 226,196

($61,134) -86,816 -94,955 -111,556 -160,922 -157,694 -154,466 -176,949 -188,009 -200,307 -201,204 -210,153 -166,148 -150,455 -158,377 -164,964 -85,668 -87,403 -124,573 -137,103 -68,691 -6,653 -6,653 -6,653 -6,653 -81,653 0

Cash Used for Equity Cash Flows Debt Service Reserve Account Dividends

($80,865) 1,614 1,614 -11,509 -5,700 -6,345 -550 -4,671 10,623 19,595 -4,135 -3,438 40,417 -933 -19,051 -6,498 4,468 62,038 0 0 0 0 3,327 0

$1,576 185,047 225,457 233,074 200,600 218,903 203,857 232,620 229,393 238,588 226,629 216,878 216,655 262,881 242,378 251,988 260,474 250,893 376,215 320,878 301,370 276,398 292,810 217,227 294,578 289,656 289,705 278,074 276,806 274,449 263,604 247,540 250,329 242,937 240,644 226,196

Equity Cash Flows Investment

($79,035) -1,986 -550,148

Total Debt

$0 1,000,000 1,024,299 1,267,280 1,450,000 1,411,111 1,372,222 1,333,333 1,268,856 1,187,614 1,086,961 977,484 849,556 755,137 669,137 567,137 449,137 401,689 348,241 252,034 134,448 75,000 75,000 75,000 75,000 75,000 0

Exhibit 10b Capital Markets Data (as of January 1997) Government or Inter-bank Debt

Federal Funds Rate 3-month Treasury Bill 3-month LIBOR 10-year Treasury Bond 30-year Treasury Bond

Yields

5.19% 5.03 5.78 6.56 6.81

Corporate Bond Ratings (U.S. Industrials)

AAA AA A BBB BB

Yields

7.13% 7.21 7.39 7.7 8.69

Sources: Petrozuata Planning Documents; Federal Reserve Bulletin; S&P Bond Guide, and casewriter estimates.