In Compliance with SEC, PDVSA to submit 2002 Annual Report                           Español

Caracas, 30 September 2003.- The documents pertaining to the annual report of Petróleos de Venezuela, S.A. (PDVSA), and of its subsidiaries PDVSA Finance Ltd. and Propernyn B.V. will be delivered, under Form 20-F, to the US Securities and Exchange Commission (SEC) before the 31st October 2003, as notified by PDVSA to the trustee of the investors holding outstanding bonds. By that date, the analysis and notes to the financial statements provided by the external auditors will have been completed. These requirements have become ever more demanding and rigorous worldwide.

It should be pointed out that PDVSA will provide a larger amount of information related to its operations and administration, in greater detail and transparency than in previous years. This will enable the SEC to have wider and more precise knowledge of the Venezuelan national oil corporation’s business.

Despite the December 2002 – January 2003 crisis, PDVSA’s operations have recovered successfully. At the July 2003 closing, its operations had achieved an oil production of 3.3 million barrels per day (bpd); refining locally 1.1 million bdp, and exporting 2.4 million bpd. Similarly, PDVSA has complied fully with its financial commitments abroad, with disbursements reaching US$ 1,8 billion at the end of September 2003; of this amount, US$ 1.4 million corresponded to debt repayment. As a result of these achievements, internationally recognized firms have consistently been upgrading Petróleos de Venezuela credit ratings.

In June this year, PDVSA notified SEC to the effect that it was unable to present its annual report under From 20-F in the time required (15 July deadline), because the sabotage which took place in December 2002 and January 2003, and which resulted in a 45% reduction of its employee payroll at the end of the first quarter. The work stoppage also negatively affected the Corporation’s financial and other computerized systems. Most of PDVSA’s financial and other computerized control began to operate progressively after February 2003.

In the first quarter 2003, PDVSA Finance Ltd.’s audited financial statements for the year ended December 31, 2002 have been completed and furnished to the trustee and to the SEC on Form 6-K. Similarly, PDVSA Finance Ltd. has delivered its financial statements for the first quarter 2003 and its monthly reports as of August 2003. Additionally, PDVSA’s U.S. subsidiaries, CITGO Petroleum Corporation and PDV America Inc., filed their annual reports on Form 10-K for 2002 with the SEC, on a timely basis, in March 2003.