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    Petrolera Zueta, Petrozuata C

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    Ankur Sinha
    This document discusses financing for the $2.4 billion Petrozuata oil project in Venezuela. The project involves inland wells, pipelines, and an upgrader facility. It will be financed through a joint venture between Maraven (PDVSA subsidiary) and Conoco Orinoco (Dupont subsidiary). Project finance is being used to allocate risks to the parties. Leverage should be based on maintaining a minimum debt service coverage ratio of 2.08 on average over the project life of 35 years from 2001 to 2022.

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    Petrolera Zueta, Petrozuata C

    Uploaded by

    Ankur Sinha
    383 views6 pages
    This document discusses financing for the $2.4 billion Petrozuata oil project in Venezuela. The project involves inland wells, pipelines, and an upgrader facility. It will be financed through a joint venture between Maraven (PDVSA subsidiary) and Conoco Orinoco (Dupont subsidiary). Project finance is being used to allocate risks to the parties. Leverage should be based on maintaining a minimum debt service coverage ratio of 2.08 on average over the project life of 35 years from 2001 to 2022.

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    Project Finance

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    This document discusses financing for the $2.4 billion Petrozuata oil project in Venezuela. The project involves inland wells, pipelines, and an upgrader facility. It will be financed through a joint venture between Maraven (PDVSA subsidiary) and Conoco Orinoco (Dupont subsidiary). Project finance is being used to allocate risks to the parties. Leverage should be based on maintaining a minimum debt service coverage ratio of 2.08 on average over the project life of 35 years from 2001 to 2022.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    383 views6 pages

    Petrolera Zueta, Petrozuata C

    Uploaded by

    Ankur Sinha
    This document discusses financing for the $2.4 billion Petrozuata oil project in Venezuela. The project involves inland wells, pipelines, and an upgrader facility. It will be financed through a joint venture between Maraven (PDVSA subsidiary) and Conoco Orinoco (Dupont subsidiary). Project finance is being used to allocate risks to the parties. Leverage should be based on maintaining a minimum debt service coverage ratio of 2.08 on average over the project life of 35 years from 2001 to 2022.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    Petrolera Zueta, Petrozuata C.A.

    Presented By: Abhinav Nigam Ankur Sinha Ishant Singhal Rohit Koul

    Lead Questions
    Why project finance is being used? How effective risk allocation is being attempted by parties to the project? How much leverage should the project have? Discuss financing strategy

    Discuss bond rating


    Calculate IRRs and discuss valuation

    About the Project


    It is a $2.4 Billion project with three components:
    A series of inland wells to produce the extra heavy crude A pipeline system to transport the crude to the coast An upgrader facility to partially refine the extra heavy crude

    Financing
    La Apertura: PDVSA raising $65 Billion to invest in a long term expansion initiative with goals of doubling its domestic oil and gas production.
    This is to open the Venezuelan oil sector to foreign oil companies

    $2.4 Billion needed for Petrozuata

    Petrolera Zuata
    Joint venture
    Maraven (Subsidiary of PDVSA) 49.9 % stake Conoco Orinoco (Subsidiary of Dupont) 50.1 % stake

    35 years project life beginning 2001 Several guarantee-Each side responsible for his share of total.

    How much leverage should the project have?

    Minimum DSCR=2.08 (Yr2008) Maximum DSCR=48.82 (Yr 2018) Average DSCR =10.62 (Yr 2001-2022)

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