1. Compare CF and PF as alternative models of financing the Orinoco Basin?

What
would you advise PDVSA to do and why?
2. What are some of the operating risks involved in Petrozuata? How does the deal
structure address these risks?
3. As a project sponsor, what are your expected returns? Asset beta for a similar
company is 0.6
4. Currently, it is planned to finance the project with 60% debt? What would happen
to the DSCR and IRR if the proportion of debt increased to 70% or decreased to
50%?
5. Discuss the advantages and disadvantages of different sources of debt in the
context of this case. What is your suggestion to the sponsor regarding the type of
debt to be used to finance this project.
6. What kind of sensitivity analysis would you do to evaluate the project’s viability?
7. Will the projects bonds receive investment grade ratings?
8. Would you invest in the project’s bonds?