Transcript Document

VENEZUELAN HYDROCARBONS:
AN OPPORTUNITY FOR PRIVATE INVESTMENT
The facts:
 The abundance of natural resources gives a definitive advantage.
 A large internal and nearby market for G&S, with ample advantages
for business in nearby countries.
 A realistic, focused on development, and substantial development
plan in Venezuela for the coming years.
 Plans to use and develop a strong local G&S sector.
 A modern legal framework in place.
 A large diversity of clients.
A large number of established local business and
businessmen with knowledge of the local conditions,
willing to take risks, to invest and to form Joint
Ventures.
THE CONCEPT
Textbook Conditions for Development
 Large Internal Market, large external
opportunities
 Demanding Market to international
standards
 Highly competitive Supply &
Demand
 Large Expansion plan O&G
 Location
 Program & Policies in place
THE OBJECTIVE: DEVELOP G&S CLUSTERS FOR THE
LOCAL MARKET AND FOR EXPORT
STRATEGY OF THE LOCAL PRIVATE SECTOR
 Develop current properties to
their full potential.
 Identify new opportunities.
 Develop associations with local
and international players.
 Increase capitalization
(strategic partnerships, capital
markets).
 Export.
THE CONCEPT: TO ADD STENGTHS
Promoting:
 JV & Alliances of Local and
Foreign companies.
 The establishment in
Venezuela of new joint
companies.
 Technology transfer
agreements.
 Cooperation agreements.
Strategic joint ventures, with foreign companies,
are highly encouraged as policy to establish
synergic relationships, integrating the skills,
experiences and strengths of each partner under a
gain-gain approach to develop the Venezuelan and
the export markets.
JV’s in Venezuela make business sence
BENEFITS TO THE PARTNERS
Joint Benefits
Foreign Partner
 Opportunity for growth. Access to larger
 Privileged, access to
strong Venezuelan and
near by market to their
product services and
technology
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
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Local Partner
 Access to new
technologies and
areas of activity
 Growth capacity

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

markets.
Secure better competitive positions.
Expansion of service offerings and
integration of competencies.
Broader base of experienced
management.
Financial benefits: Lower financial risk.
Access to investment capital.
Shared (reduced) marketing costs.
Lower production and operating costs,
improved use of resources.
Reduced Risks.
 Share Holder Value Creation
JV AND ALLIANCES SCHEMES
JV SCHEMES
 Value added product
representations
 Cooperation agreements with
existing companies
 Technology transfer / New
development agreements
 Investing in ongoing business
for technological and
operational improvements,
expansions or new product
development
 Investing in new business or
facilities
JV EVOLUTION
 Identification of interest
 Organized workshops
 MOU
 Joint market analysis and
development
 JV commitment
 Commitment to invest
Strategy First,
Deal Making Second
WHY VENEZUELA:
CONFIDENCE AND COMPETITIVINESS
 Most prolific hydrocarbon region outside of the middle east
 Attractive Geographic Location.
 A strong, long established and demanding industry based on
international standards, with a competitive supply sector.
 More than twenty private oil companies operate in Venezuela ranging
from large multinational to small local companies.
 A free market economy subscribed to the WTO.
 Substantial development plan for the coming years.
 A tradition of respect to private investment.
 A modern legal framework.
The right attributes to develop competitive advantages
THE ROAD AHEAD
• The process will continue, the opportunities are there.
• Objective: Identify business areas of mutual interest.
Emphasis on:
Schemes:
> Gas
> Manufacturing of G&S
> Refinery
> Supply of G&S
> Alliances
> Petrochemicals
> Operation
> Investment
> Use of Refinery Streams
> Technology Transfer
> Financing
Focus on development
and creation of value
Social Training
Plans
Human development
projects
Small business
enterprises
The Venezuelan oil private sector is committed
to the development of the country and
understands that this development has to
reach all Venezuelans.
We understand our responsibility to create
well paid, sustained and productive
employment as the long term solution to the
problems that impair our society today.
But we also understand that the actual
situation does not permit us to sit and wait for
the long term.
Today we are active and committed, the
Chamber promotes and stimulates Social
Responsibility as Corporate Strategy,
integrating efforts with contributions in social
investment and sustainable development
directed to the areas of:
Educational and Health
Programs
Hospital and School
support
Training and Formation