RE: Head of Regulatory Agency Ramirez comments to the press Alberto,

If the meeting with the Governor is on for Thursday, lets try to have a meeting with Rafael on Friday. Could you please try to arrange the meeting for both of us?, let me know please.

With regard to majority stakes, we have indicated in several ocassions that Enron would be more than willing to increase PDVSA"s (in this case the government) stake to a higher number. So, I don't really believe this should be a showstopper for Jose. On the other hand, although we will have to see the by-laws and shareholders agreements to be precise, a 33% stakes gives you nothing more than a simple majority. Still, Shell and Exxon together clearly control the venture. It is also stupid to say that "not in a single country in the world.......". How about Trinidad for example. I'm not sure if he is referring to the Governments or companies?.

We can clear this up in our meeting with him. Let me know if and when is he available to meet.

Thansk a lot,

Emilio

 -----Original Message-----
From: 	Levy, Alberto  
Sent:	Tuesday, September 04, 2001 11:27 AM
To:	Vicens, Emilio; Caranti, Guido; Gerstandt, Neal
Cc:	Shapiro, Richard
Subject:	Head of Regulatory Agency Ramirez comments to the press

Greetings,
Yesterday Rafael Ramirez, head of the gas regulator ENAGAS, said that PDVSA will hold a majority stake in the Venezuelan LNG project (PDVSA 33%, Shell 30%, ExxonMobil 29% and Mitsubishi 8%). The partners already signed an MOU reflecting these proportions. The increment is because of a requirement in the draft of the Hydrocarbons Law. He justifies this requirement, based on the "strategic characteristics" of the commodity, saying that "not in a single country in the world, the owner of the resource has a minority stake." Perhaps this is the showstopper to the Jose LNG project. 
Moreover, Ramirez adds that "in a particular moment in time there were doubts about the feasibility of serving both domestic and export markets, but a multidisciplinary committee approved the project." This clears the gas deficit issue.
Below you'll fing the news clip (in Spanish, sorry).
I suggest having a meeting with Ramirez to determine if this is the issue. Please advise. Regards,
ALF

Martes, 4 de septiembre de 2001 
 
PDVSA serï¿½ socio mayoritario en Venezuela GNL  
 
Entre los detalles que afina el alto Gobierno con respecto al proyecto Venezuela Gas Natural Licuado se encuentra el incremento de la participaciï¿½n accionaria de Petrï¿½leos de Venezuela prevista en el anteproyecto de Ley de Hidrocarburos . 
El argumento lo explica Rafael Ramï¿½rez, presidente de Enegas, quien indica que "el Ministerio aprobï¿½ que vamos a ir a una mayorï¿½a accionaria en el proyecto (...) en ningï¿½n paï¿½s del mundo, el dueï¿½o de los recursos va con participaciï¿½n minoritaria". 
De acuerdo al Memorï¿½ndum de Entendimiento firmado entre los socios, PDVSA cuenta con 33% de las acciones, seguido de Shell con 30%, ExxonMobil 29% y Mitsubishi 8%.  

Caracas, martes 04 de septiembre, 2001 
 GAS /// Ejecutivo afina ï¿½ltimos detalles 
Pdvsa serï¿½ socio mayor en Venezuela GNL    
  

Rafael Ramï¿½rez informï¿½ avances de acuerdo binacional con Noruega 
 
Para Enegas el carï¿½cter estratï¿½gico del gas obliga a aumentar la participaciï¿½n de Pdvsa 


PATRICIA VENTURA NICOLAS 

EL UNIVERSAL 

Entre los detalles que afina el alto Gobierno con respecto al proyecto Venezuela Gas Natural Licuado se encuentra el incremento de la participaciï¿½n accionaria de Petrï¿½leos de Venezuela prevista en el anteproyecto de Ley de Hidrocarburos. El argumento lo explica Rafael Ramï¿½rez, presidente de Enegas, quien indica que 'el Ministerio aprobï¿½ que vamos a ir a una mayorï¿½a accionaria en el proyecto (...) en ningï¿½n paï¿½s del mundo, el dueï¿½o de los recursos va con participaciï¿½n minoritaria'. De acuerdo al Memorï¿½ndum de Entendimiento firmado entre los socios, Pdvsa cuenta con 33% de las acciones, seguido de Shell con 30%, ExxonMobil 29% y Mitsubishi 8%. 
'El gas va a ser estratï¿½gico, es la energï¿½a del futuro. No vemos razï¿½n por quï¿½ si tenemos la magnitud de reservas que tenemos. Si tenemos la operadora tan buena que tenemos, tenemos que ir en minorï¿½a accionaria', comentï¿½ Ramï¿½rez, ratificando la tasa completa de 20% en las regalï¿½as establecida en el marco jurï¿½dico. Aunque aï¿½n se siguen afinando ciertos detalles, el proyecto Venezuela GNL tiene claro su futuro como exportador. En algï¿½n momento se dudï¿½ sobre la factibilidad de atender ambos mercados (domï¿½stico e internacional), pero un comitï¿½ multidisciplinario otorgï¿½ el visto bueno. 
Como parte de este proyecto e ï¿½ntimamente relacionado con el desarrollo de la Plataforma Deltana, se adelanta la firma de un acuerdo con el Gobierno noruego para compartir experiencias costa afuera, tras la visita de una delegaciï¿½n venezolana a la naciï¿½n europea. 'La gerencia de Diego Uzcï¿½tegui en Pdvsa ha identificado oportunidades de negocio para el sector nacional de mï¿½s de 50% de los requerimientos que allï¿½ se necesitarï¿½n (...) Noruega tiene una experiencia excelente en apalancamiento del sector privado a travï¿½s de sus inversiones', indicï¿½ Ramï¿½rez.  

