2007

Closing of Loan Agreement for Petroleo de Venezuela

Feb. 23. 2007
Marubeni Corporation


Marubeni Corporation (“Marubeni”), together with Mitsui & Co., Ltd.(“Mitsui”), made and entered into the loan agreement with Petroleo de Venezuela S.A (“PDVSA”), with financial support by Japan Bank of International Cooperation (“JBIC”). Total loan amount is US$3.5 billion and loan period is 15 years.

At the same time, Marubeni and Mitsui reached Master Offtake Agreements, independently, with PDVSA and receive a sole right to negotiate the offtake conditions of crude oil and petroleum products on annually renewal basis during loan period.

Two Special Purpose Companies established in the Netherlands by Marubeni and Mitsui (Yucpa Finance B.V, and Caribe Financing Company B.V.) receive the funds from the bank consortium consisting of JBIC and commercial banks and provide such funds to PDVSA. PDVSA will repay such loan by its sales cash flow of crude oil and petroleum products from Venezuela.

PDVSA, a 100% state oil company of Venezuela where ranked 8th position of crude oil production all over the world, is now producing 3 million barrel per day. Though Marubeni’s establishment of deep and strong relationship with PDVSA, Marubeni contributes diversification of energy resources to Japan and develops and expands business opportunities in the oil and gas sector in Venezuela.

<Company profile of PDVSA>     (as of end of December 2005)
Name :  Petroleo de Venezuela S.A.
Business : Exploration, development, production, refining, transportation and sales of crude oil and gas and production and sales of petroleum products
Sales amount : US$85,730 million
Income
US$19,209 million
Net income : US$6,483 million
Total assets : US$70,365 million
Stockholder equity : US$47,095 million

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