international law firm

INTERNATIONAL LAW FIRM

LONDON GUILDFORD CARDIFF HONG KONG BELGRADE SINGAPORE DUBAI PARIS PIRAEUS ST.PETERSBURG



ExportationsExportations2.796MBD2.796MBD

CabotageCabotage464MBD464MBD

in 2001...in 2001...in 2001...in 2001...Atended:Atended:

Exportations 16%: 450 MBDExportations 16%: 450 MBDCabotage 83%: 389 MBDCabotage 83%: 389 MBD

Atended:Atended: Exportations 16%: 450 MBDExportations 16%: 450 MBD

Cabotage 83%: 389 MBDCabotage 83%: 389 MBD

2

Wide opening to the maritime

sector...



8 Lakemaxes 8

2 Aframaxes 18

2 Panamaxes 18

4 Producteros 5

2 Asfalteros 18

2 Gaseros 18

1 Lubricants 18

21 Total 15

Age

Zeus / Proteo / Icaro / ParnasoTeseo / Eos / Nereo / Hero

Values as of Dec. ‘01

Ambrosio / Morichal

Paria / Moruy

S. Duim / M. SayaleroB. Palacios / P. León

Guanoco / Inciarte

Yavire / Paramacay

Caura

SIM

PL

E

HU

LL

Entry limitations to the USA

Vessel reaching the end of useful life

3



EXPORTATIONcrudes and products Total 2.796 MBD

CABOTAGEcrudes and products Total 464 MBD

Volume controlledVolume controlledby PDVSAby PDVSA

VesselsVesselsHired Hired PDVSAPDVSA

1.954 MBD / 70%

392 MBD / 14%FOB Sales

VesselVesselss

PDVMPDVM 450 MBD/16%

PDVMPDVM

389 MBD/83%

75 MBD / 17%

Volume controlledVolume controlledby PDVSAby PDVSA

Vessels Vessels Hired Hired PDVSAPDVSA

4

MARKETING PROMOTING /

MONITORING NEW BUSINESSES AND ASSOCIATIONS

OPERATING STRATEGIC FLEET



StrategicStrategicFleetFleet

InternationalInternationalCrudeCrude

AssociationAssociation

InternationalInternationalCrudeCrude

AssociationAssociation InternacionalInternacionalCrudeCrude


NationalNationalCrude Crude


Nac. / IntNac. / IntProductsProducts


5



TotalContro

l

StrategicAlliance/Associati

onLOW HIGH

DEGREE OF SPECIALISATION OF MARKET

CER

TA

INTY

OF

DEM

AN

D

LOW

HIGH Transportof CrudesNac. & Int. Internal

Transport

Productos

Internacional

TransportProducts

Lubricants

AsphaltTransport

LPG

LNG

External/Occasion

al

Decides

Crudes / ProductsCrudes / Products

Specialisation Specialisation (Asphalts,GLP,L(Asphalts,GLP,L

ub.)ub.)

Specialisation Specialisation (Asphalts,GLP,L(Asphalts,GLP,L

ub.)ub.)

Develop Associations / Alliances in

Cabotage and Exportation

Develop Associations / Alliances in

Cabotage and Exportation

Maintain/Re-inforce control

of own fleet

Maintain/Re-inforce control

of own fleet

6

• Easy Access• Low Cost• Control on Safety Standards• Unique features when compared to other SA Countries

7



• Registration by foreign corporations through a branch or subsidiary• No restriction on nationality of shareholders• No restriction on nationality of management• Registration by Owner• Bareboat Charter Registration• Registration on Lease

8



Elimination of:

• Tax barriers• Import Duties• VAT• Customs Fees

9



75% of the vessel’s valueor

75% of hire to be usedover a 4 year period



10

Vessel Value = £1,000,000 Tax Rebate = £750,000Gross Income = £1,000,000Expenses = £800,000Net Profit before Tax = £300,000Income Tax (34%) = £68,000£68,000 of Tax Rebate = -68,000Net Tax = NilTax Rebate balance usable for 3 yrs. = £682,000



11

• Labour• Service Culture



12



13

0.623.725.3

25.5

91.1

60.1

VenezuelaPanamaLiberiaBahamasGreeceCyprus



Promote participation of nacional capitalPromote participation of nacional capital Decrease exportation of currencyDecrease exportation of currency Support the National Merchant MarineSupport the National Merchant Marine Share benefits and risks with allShare benefits and risks with all

Invites investment in VenezuelaInvites investment in Venezuela Modernisation of fleetModernisation of fleet Opens employment opportunitiesOpens employment opportunities Stimulates growth of naval industryStimulates growth of naval industry

14

international law firm

Documents

net tax

income tax

tax barriers

petersburg registration

products total2

nationality of shareholders

net profit

niltax rebate balance