2.2.2 Value Chain of the Oil Industry

PRIVATE EQUITY INVESTMENT FUND AS A DEBT INSTRUMENT PRESENTATION

enunciativa más no limitativa: obra civil (construcción), responsabilidad civil, responsabilidad civil profesional, propiedad (daños), riesgo ambiental, riesgo político y social, transporte de carga.

As part of Investments monitoring, ENERMAS LATINOAMÉRICA will seek that if necessary Strategic Partnerships with which a Cluster, Consortium, Joint Venture, and/or Co-investment is formed, contract insurance and bonds required by the Applicable Legislation, as well as other complementary ones to mitigate risks to which they are exposed. Among insurance policies to be contracted, the most important are listed below: civil works (construction), civil liability, professional civil liability, property (damages), environmental risk, political and social risk, and cargo transportation.

Actions to mitigate legal risks in Strategic Partnerships with whom Cluster, Consortium, Joint Venture, and/or Co-investment are formed, are based on Key Officers successful experiences and ENERMAS LATINOAMÉRICA’s Investment team members. Actions oriented to reduce exposure to these risks are: Strategic Partner compliance policies and procedures Implementation. Legal rules and regulations analysis that represent higher short-term risk exposure for Strategic Partners. Agreements key aspects evaluation: definition, objectives, types of Agreements, general contract considerations, among others. Dissemination and training guidelines for Strategic Partner’s Human Asset in new legal aspects.

4.6.5 EXIT.

Exit or Divestment strategy is a fundamental and conclusive part of Investment Process to materialize Returns. From monitoring ENERMAS LATINOAMÉRICA will determine if Investments comply with conditions and requirements for Promoted Asset or Project. Exit strategy success will depend to a great extent on work performed throughout the whole Investment Process.

Once different alternatives valuation has been completed, Investment Committee will be informed of the scope of each one. Investment Committee will proceed to Divestment approval. Once Divestment has been completed and financial closing has taken place, ENERMAS LATINOAMÉRICA as Manager shall prepare a report with administrative, financial and/or technical aspects containing Asset or project essential elements during the whole Investment Process. The report shall include main factors analysis that determines Investment performance and any other important events. Such report shall be part of Investment performed final documentation and shall serve as for analysis basis in order to take advantage of the lessons learned.

Divestments shall consist of transfer or redemption of Fund’s participations in Promoted Projects. Mechanisms to implement Divestments may vary. Divestment schemes may consist of, among others, investment amortization procedures. The most convenient scheme analysis to perform a Divestment will be performed by ENERMAS LATINOAMÉRICA as Manager.

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