Registration Application Required for doing business with PDVSA.

PDVSA Example LOI, Bank Soft Probe Document and Buyer Mandate and Appointment

Final Documents Required Closing Documents Required for doing business with PDVSA.

PROCEDURES

1.      Buyer confirms Soft Offer and returns a completed PDVSA Registration form with an ICPO, or LOI with BCL/RWA with Petróleos de Venezuela, S.A. “PDVSA”, right to Soft Funds Probe Authorization equal to first month’s shipment dollar amount. Use any current market rate +/- 5% as a price for figuring your dollar amount of the Soft Probe. Account must match buyer/purchasing company.

2.      The Soft Probe takes 1 week to complete Soft Probe after Petróleos de Venezuela, S.A. (PDVSA), receives the Registration, ICPO, or LOI along with BCL/RWA & Banking Info for Petróleos de Venezuela, S.A. (PDVSA)

3.      PDVSA sends Price Sheet, Soft Corporate Offer and Proof of Product (POP) with Specifications. Buyer signs and returns.

4.      Oil Venezuela sends Introduction to Petróleos de Venezuela, S.A. (PDVSA) contact in Venezuela.

5.      Registration with Petróleos de Venezuela, S.A. (PDVSA)

6.      PDVSA sends Draft Contract, Buyer signs, returns Contract and initiates an unconditional MT-760 blocking of funds at Buyer’s bank in Petróleos de Venezuela, S.A. (PDVSA)’s Name as Beneficiary, confirmed by Petróleos de Venezuela, S.A. (PDVSA)'s bank. Blocked funds shall remain effective for a period not to exceed 60 days or until first month delivery is completed, which ever is less.

7.      Petróleos de Venezuela, S.A. (PDVSA), submits to Buyer’s Bank an operable Performance Bond equal to 2% of the first month shipment amount.

8.      Shipments begin per contract.

9.      Upon two (2) consecutive Spot purchases with no problems.

10.      Contract with Petróleos de Venezuela, S.A. (PDVSA), direct.