PDVSA Reaches Agreement with Petrozuata Project Bondholders and Prepays Petrozuata Project Bank Loans

Petróleos de Venezuela, S.A. (“PDVSA”) announced that following successful negotiations it has entered into a Lock-Up Agreement with the holders of 77.23% in aggregate principal amount of the 7.63% series A bonds due 2009, 8.22% series B bonds due 2017 and 8.37% Series C bonds due 2022 issued by Petrozuata Finance Inc. (collectively, the “Bonds”) in connection with the Petrozuata extra-heavy crude oil project in the Orinoco Belt region (the “Petrozuata Project”), providing for PDVSA (or an affiliate) to consummate, no later than 90 days after the effectiveness of the Lock-Up Agreement, a tender offer for the Bonds at a purchase price equal to par plus accrued and unpaid interest and an amount equivalent to 33% of the redemption premium calculated under the indenture pursuant to which the Bonds were issued. In addition, holders who validly tender their Bonds in the tender offer will be paid a consent fee equal to 0.25% on the principal amount of Bonds tendered. As of the date hereof, there are approximately $755.2 million in principal amount of Bonds outstanding. Bondholders that are parties to the Lock-Up Agreement (the “Lock-Up Holders”) have agreed to tender all of their Bonds, including Bonds they subsequently acquire, subject to their ability to transfer Bonds provided the transferee already is a Lock-Up Holder or becomes a Lock-Up Holder as a condition to the transfer.