Mitsui & Co., Ltd. ("Mitsui") announced today the closing of the agreement for loan facilities (US$ 3.5 billion, 15 years) jointly granted to Petróleo de Venezuela S.A. ("PDVSA") by Mitsui and Marubeni Corporation ("Marubeni"), with the support of the Japan Bank of International Cooperation ("JBIC").
In addition to the loan agreements, Mitsui and Marubeni simultaneously, signed frame contracts by which Mitsui and Marubeni obtain the right to negotiate and conclude agreements to off-take crude oil and petroleum products on an annual review basis with PDVSA during the loan period.
JBIC and several commercial banks have formed a syndicate as senior lenders and will provide the loan facilities for such off-taking transactions to two special purpose companies (Caribe Financing Company B.V. and Yupca Finance B.V., -SPCs-, established in the Netherlands by Mitsui (50%) and Marubeni (50%)). The loans to the SPCs will be extended to PDVSA, which will service the debt through sales proceeds from oil and petroleum products from Venezuela through the off-taking arrangements.
PDVSA is the national oil company of Venezuela, which is the 8th largest crude oil producer in the world, and is currently producing around 3 million barrels per day of crude oil. Mitsui seeks to strengthen and develop relations with the national oil company and to contribute to diversifying Japan's energy supply sources and to creating and expanding business opportunities for Japanese companies in the oil and gas sector in Venezuela.
Outline of PDVSA ( As of end/December, 2005)
||Petróleo de Venezuela S.A.
||Exploration, production, refining, transport and commerce of hydrocarbons.
||US$ 85,730 million
||US$ 19,209 million
||US$ 6,483 million
||US$ 70,365 million
||US$ 47,095 million
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