www.conapri.org Executive Resume of the Chemicals and Petrochemicals Business Profile (2006), edited by the Venezuelan Council for Investment Promotion, CONAPRI Get the complete version at the www.conapri.org Virtual Store

1. CHEMICALS AND PETROCHEMICALS Executive Resume Caracas, July 2006 Get the complete version at www.conapri.org Virtual Store

6. COUNTRY PROFILE and legal framework

9. Obtain a visa Incorporate the company Register company with tax authorities Register company’s investment Register company with social security agency Register company with INCE Business Visitor’s Visa Investor Visitor’s Visa Decide on type of company Name the company Pay in minimum required capital File with Mercantile Registry Publish incorporation papers Banking Oil and gas Insurance Mining Other sectors Draw up articles of incorporation and bylaws General Legal Framework

10. GLOBAL SITUATION

13. CHEMICAL INDUSTRY in Venezuela

16. Macroeconomic Indicators Source: BCV - Asoquim The average product for the chemical and petrochemical industry during this period comes to 757 million dollars. The notable recovery in 2004 and 2005 places this indicator at its highest level in the past eight years. Chemical and petrochemical GDP in MM US$

18. Source: National Statistics Institute (INE), Asoquim External sector The share of exports to Latin America has fallen in favor of exports to North America Share of imports from North American has fallen in favor of Latin America. Trade balance by destination North America Latin America European Union Rest of World North America Latin America European Union Rest of World

19. Source: National Statistics Institute (INE), Asoquim Sales Indicators The domestic market has been the most important in the period analyzed; however, the gap has narrowed. Internal External The difference between the sales of the petrochemical subsegment and the rest has increased in recent years.

20. PETROCHEMICAL SECTOR domestic

21. Production Source: 2005-2012 Strategic Plan, Pequiven There has been a marked recovery of production in the petrochemical industry over the past two years. In fact, despite declining levels since 1999, the average growth rate for gross production is 4.3%, and 3.5% in the case of net production. MTM Annual Production in MTM

22. Net profit Net profit for the sector has gained considerable ground, even after 2003, a year marked by a serious economic contraction in the country. The average growth rate of profits is 167%. Billions of Bs. 1999 Source: 2005-2012 Strategic Plan, Pequiven Net profit in billions of Bs. - 1999

23. Processed petroleum Source: PODE 2003 Final production of products obtained by means of the different refining processes exceeds the amount of petroleum that is simply processed for delivery as a raw material to other industries, both domestic and foreign. MMB Processed Petroleum and Products Obtained in MMB

24. Indicators Source: PODE 2003 Basic Indicators for the Petrochemical Sector 276.000 -54.487 16.000 23.783 -84.309,8 Net Profit (Loss), MMBs 42,5 75,8 67,1 81 84 Capacity Utilization, % 940,4 1.362 1.342 1.300 1.287,5 Productivity, MT/Man 2.165 2.669 2.399 3.004 3.124 Actual Labor Force 336.000 264.696 373.221 218.577 109.864 Foreign Market; MMBs 698.000 398.714 486.432 309.395 249.079 Domestic Market, MMBs 1.034.000 663.410 859.653 608.972 358.943 Total Sales, MMBs 2.036 3.635 3.217 3.907 4.022 Gross Production, MTM 2003 2002 2001 2000 1999 Consolidated State-owned Comps.

26. Prospects Source: Asoquim A survey by the Venezuelan Association of the Chemical and Petrochemical Industry (Asoquim) during the second half of 2005 show ed that its members have a positive outlook regaring the present and the immediate f uture , as regards both their companies and the sector as a whole. 68% 28% 0% 4% Very Good Good Average Bad Current condition of your company 4% 47% 43% 6% Very Good Good Average Bad Current condition of the sector

27. Contact us Web page htttp://www.conapri.org Tel: +58 212 953 1946 Fax : +58 212 953 3915 Address Calle Guaicaipuro Torre Forum Planta baja, oficina LC-A, El Rosal Caracas 1060, Venezuela