NATURAL GAS IN VENEZUELA

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NATURAL GAS IN VENEZUELA North of Paria and
Delta Basin Development - LNG PROJECT-
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Proved Reserves Natural Gas (TCF)
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PUBLIC POLICIES

• DEVELOPMENT OF NON ASSOCIATED GAS SOURCE
• GUARANTEE GAS REQUIREMENTS TO THE DOMESTIC
  MARKET
• ALLOWS VOLUMES FOR EXPORT
• GAS INFRASTRUCTURE EXPANSION
• THE INDUSTRIALIZATION OF GAS
• FAIR AND REASONABLE TARIFF AND PRICES FOR GAS IN
  THE VENEZUELAN
• MARKET
• MARKET VALUE FOR EXPORTED GAS

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POTENCIALITIES

• VENEZUELA HAS HUGE RESERVES OF NATURAL GAS
• COMMITMENT TO DEVELOP THESE RESOURCES IN THE
  SHORT TERM
• EXCELLENT POSITION AND POTENCIALITIES TO SATISFY
  THE
• DOMESTIC MARKET AND BE A LNG PLAYER

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LEGAL AND INSTITUTIONAL FRAMEWORK

• PRIVATE AND/OR PUBLIC CAPITAL PARTICIPATION
• CREATION OF A NATIONAL GAS REGULATORY BODY
  (ENAGAS)
• OPEN ACCESS ON TD
• 20 ROYALTY
• INCOME TAX RATE 34
• INCENTIVE FOR NEW INVESTMENTS

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DEVELOPMENT OF NON ASSOCIATE GAS SOURCES
Paraguana
Maracaibo
Caracas
Valencia
Jose
Pto. La Cruz
Barquisimeto
LAGO HUB
Anaco
Pto. Ordaz

• 11 areas
• Domestic Market

ONSHORE
OFFSHORE

• North of Paria /Delta Basin
• LNG Export
• Domestic Market
• Gas Industrialisation Projects

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Upstream
Marketing
North of Paria and Delta Basin Development
NORTH OF PARIA
LNG
DELTA BASIN
Domestic Market
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Upstream
Marketing
North of Paria and Delta Basin Development
NORTH OF PARIA
LNG
Lau-Lau N
Lorán Norte
Gas Pipeline
Bora Norte
Domestic Market
Bora
Lorán Sur
Tajalí
Monoboya
Bora Sur
TRANSMISSION
DELTA BASIN
COMPRESSION
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NORTH OF PARIA 14 TCF LNG EXP. / DOMESTIC
DELTA BASIN 15TCF LNG EXP. / DOMESTIC
Maracaibo
Caracas
Valencia
Paria
Jose
Barquisimeto
LNG
Plataforma Deltana
VENEZUELA
Pto. Ordaz
Orinoco River
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• THE INTERNATIONAL LNG MARKET IS GROWING
• VENEZUELA HAS HUGE GAS RESOURCES TO SATISFY THE
• DOMESTIC MARKET AND BE A LNG PLAYER
• VENEZUELA TARGET AS A MAJOR ENERGY SUPPLIER IN
  AMERICA

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North of Paria
FIRST TRAIN PARIA EXPORT TO USA 4.7 MMTY LNG
2006-2007
Atlantic Ocean
LNG
Trinidad Tobago
EXPANSION LNG TRAINS PARIA AND DELTA BASIN
RESERVES TO ATLANTIC BASIN EXPORT
Domestic Market gas supply
Delta Basin
Industrial development

• LNG
• PETROCHEMICAL
• GAS TO LIQUID
• LPG
• INFRASTRUCTURE
• POWER GENERATION
• UTILITIES

East Venezuela
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COMMITMENT TO GAS DEVELOPMENT
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THANK YOU VERY MUCH