INTERNATIONAL LAW FIRM

1. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS Venezuela: Current Events and their Impact on the Insurance Sector Aurelio Fernández-Concheso Caracas Stirling Leech London

2. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS April 11, 2002: Protesters marching in Caracas

3. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS April 11, 2002: Shootings around Presidential Palace

4. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS April 11, 2002: Government supporters shooting from Llaguno’s bridge against protesters and police officers

5. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS April 12, 2002: General Lucas Rincon and High Commander Officers announce Chavez’s resignation to the Presidency

6. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS Interim Government led by Pedro Carmona

7. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS April 14, 2002: Chavez returns to power after failure of the Interim Government lead by Pedro Carmona

8. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS October 22, 2002: Legitimate Disobedience

9. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS December 02, 2002: National General Strike

10. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS

11. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS December 04, 2002: PDV Marina joins the General Strike

12. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS

13. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS PDVSA’s Operational Report on 14th January: Oil Production (Thousands of Barrels/day) Gas Compretion (Millions of cubic feet/day) 9400 Normal Value Normal Value 3280 87 % closed down 70 % closed down 2819 413 Current Value Current Value Gas Production-Anaco (Millions of cubic feet/day) 1800 Normal Value 53% closed down 850 Current Value

14. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS PDVSA’s Operational Report on 14th January: Oil Refining (Thousands of Barrels/day) 1264 94% Closed Down 75* * PLC is currently operating at 38% of its total capacity of 120 thousands barrels/day

15. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS Oil spill in Lake Maracaibo (Jan.2003)

16. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS Explosion at El Palito Refinery

17. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS PDVSA’s Risk Profile Property Insurance: 5 MM $ (deductible) 20 MM $ (PDV Insurance Bermuda) Values at Risk: 25,000 MM $ Estimate Maximum Loss: 800 MM $ Loss of Income: No Cover Renewal:

18. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS Potential Insurance issues regarding PDVSA Cover: Might be challenged (No renewal ?) Due Diligence: In General terms, the Company is not being operated by dully qualified personnel Mitigation of damages: There is no SHA team available to face a potential loss at the Refineries and Production facilities

19. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS Potential Insurance issues regarding Private Operators Cover: Loss of income is normally included in their policies Proximate Cause: Migh be challenged: Strike, Stoppage, Civil Disobedience or Sabotage ???

20. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS • Other potential claims in the Energy Sector: • Consequential damages in relation to supply agreements. • Breach of Contracts (Supply agreements of Oil and • derivatives). • Loss of opportunity by PDVSA’s customers abroad. • Financial liabilities for those companies involved in • production activities in the Orinoco Belt (Apertura Petrolera). • Financial liabilities that may be incurred by PDVSA’s • subsidiaries and PDVSA’s joint ventures in Venezuela and • abroad.

21. INTERNATIONAL LAW FIRM LONDON GUILDFORD CARDIFF PARIS BELGRADE PIRAEUS ST.PETERSBURG DUBAI SINGAPORE HONG KONG CARACAS Other potential claims in the Energy Sector (cont...): • Property damages (Plants, Refineries, Production • facilities and other equipment). • Strike or Sabotage ??? • Environmental damages for oil spillage in Maracaibo • Lake. • Execution of Letter of Credits.