Venezuela: Billion Dollar Financing Granted For Venezuelan Oil Project
Last Updated: 10 August 2001

Petróleos de Venezuela, Phillips Petroleum Company and Texaco Inc. successfully obtained funding in the amount of 1.1 billion dollars for the extra-heavy oil exploitation project to be developed in the Hamaca region of the Orinoco Oil Belt, situated in the southeastern region of Venezuela.

The association agreement between these oil companies, authorized by Article 5 of the Nationalization Law, was entered into in 1997 and, since 2000, the process of locating funding had been underway. Venezuelan Law Firm Torres Plaz & Araujo acted as local counsel in all matters pertaining to the legal framework applicable to the financing, the largest ever granted for a private business venture in Venezuela. The project has been given the classification of "investment grade", from both Moodys Investors Service and Fitch Inc.

The amount to be financed by foreign banking entities will be designated to cover investments in the areas of transportation and upgrading of the plants used to produce a mid product for exports, which will increase crude production by approximately 210 thousand barrels per day.

The operations stage of the project is expected to begin in 2003 and to have a duration of 35 years.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Press Releases from this Firm
Recent Content from this Firm
By Rodrigo Stolk
By Miguel Osio Zamora
By Miguel Osio Zamora
By Ana Arriaga, Ana Arriaga
Tools
Print
Font Size:
Translation
Channels