TCRLA_Public/041129.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

         Monday, November 29, 2004, Vol. 5, Issue 236

                            Headlines


A R G E N T I N A

AES ARGENTINA: Epse Formally Takes Over Hydro Plant
ALPHA HERRAMENTAL: Court Orders Liquidation
BANCO NACION: Opens New Line of Credit for SMEs
COLLECTIVEMIND INC.: Initiates Bankruptcy Proceedings
COMPANIA DE SERVICIOS: Files Petition to Reorganize

CRESUD: Convertible Notes Holder Exercises Conversion Rights
DARRIAN S.A.: Gets Court Ok for Reorganization
DEBO S.A.: Liquidates Assets to Pay Debts
DISENO E IMAGEN: Enters Bankruptcy on Court Orders
EXPORIALE S.R.L.: Court Rules for Liquidation

IMPSA: Fitch Argentina Maintains Ratings on Corporate Bonds
JERGON S.R.L.: Liquidates Assets to Pay Debts
LITTLE PALACE: Enters Bankruptcy on Court Orders
MARMOLERIA PRINGLES: Court Grants Reorganization Plea
MASTELLONE HERMANOS: S&P Affirms `raD' Rating on Bonds

PETROBRAS ENERGIA: October Oil, Gas Production Falls 1.6%
SAMBEX INVESTMENT: Court Converts Bankruptcy to Reorganization


B R A Z I L

BANCO SANTOS: Moody's Attempts to Explain Reasons for Downgrade
CEMIG: Notifies Suppliers of Changes From De-Verticalization


J A M A I C A

AIR JAMAICA: Government Eyeing Additional 20% Stake



M E X I C O

BANAMEX: Proceeds with Liquidation of New York Agency
PEMEX: Announces Discovery of Heavy Crude Oil in Deep Waters


P E R U

TDP: Welcomes New President


V E N E Z U E L A

PDVSA: To Create Gas JV With Russian Firm

     -  -  -  -  -  -  -  -


=================
A R G E N T I N A
=================

AES ARGENTINA: Epse Formally Takes Over Hydro Plant
---------------------------------------------------
Argentina's energy ministry notified the wholesale power market
(MEM by its Spanish initials) that the San Juan province power
company Epse has officially taken control of the 45MW Ullum
hydro plant from US power Company AES, reports Business News
Americas.

AES obtained a 30-year concession for the Caracoles hydro
complex, which included Ullum and the construction of two new
plants, in 1998.

Business News Americas earlier reported that the project was
dependent on securing financing, but Argentina's financial
crisis made it nearly impossible to attract investment,
prompting AES to ask the San Juan government in February 2002
for permission to return the concession.

As part of the Caracoles complex, San Juan province has also
taken control of the construction of the 123MW Caracoles and the
65MW Punta Negra projects.

AES still operates distributors Eden, Edes and Edelap and
various other Argentine generation plants.


ALPHA HERRAMENTAL: Court Orders Liquidation
-------------------------------------------
Buenos Aires-based Alpha Herramental S.R.L. prepares to wind-up
its operations following the bankruptcy pronouncement issued by
Court No. 17 of the city's civil and commercial tribunal. The
declaration effectively prohibits the Company from administering
its assets, control of which will be transferred to a Court-
appointed trustee.

Infobae reports that the Court appointed Mr. Guillermo Hector
Fernandez as trustee. He will be reviewing creditors' proofs of
claims until February 4, 2005. The verified claims will serve as
basis for the individual reports to be presented for Court
approval on March 4, 2005. The trustee will also submit a
general report on April 4, 2005.

The city's Clerk No. 33 assists the Court on this case that will
end with the disposal of the Company's assets to pay its
liabilities.

CONTACT: Alpha Herramental S.R.L.
         Ramon L Falcon 1060
         Buenos Aires

         Mr. Guillermo Hector Fernandez, Trustee
         Cerrito 520
         Buenos Aires


BANCO NACION: Opens New Line of Credit for SMEs
-----------------------------------------------
Federal Argentine bank Banco Nacion has offered a new line of
credit for micro-, small- and medium-sized enterprises totaling
ARS300 million (US$100 million), Business News Americas reports.

The loans will be issued at a fixed 8.5% annual interest rate
for up to ARS500,000.

"We want to support SMEs at this time of the year when they have
higher production needs," bank president Felisa Miceli said.

Banco Nacion, the country's largest export and import financier
for SMEs, recently revealed plans to boost its operations in the
segment next year.

According to Nacion's senior VP and head of financial
institutions and correspondent banking Patricio Suarez, and the
bank is already the Argentina's largest export and import
financier in that segment.


COLLECTIVEMIND INC.: Initiates Bankruptcy Proceedings
-----------------------------------------------------
Court no. 14 of Buenos Aires' civil and commercial tribunal
declared Collectivemind Inc. S.A. "Quiebra," reports Infobae.

Ms. Adriana Beatriz Elisii, who has been appointed as trustee,
will verify creditors' claims until February 23, 2005 and then
prepare the individual reports based on the results of the
verification process. The individual reports will be submitted
in Court on April 6, 2005 followed by the general report on May
18, 2005.

The city's Clerk No. 27 assists the Court on the case that will
close with the liquidation of the Company's assets to repay
creditors.

CONTACT: Ms. Adriana Beatriz Elisii, Trustee
         Avda Cabildo 2040
         Buenos Aires


COMPANIA DE SERVICIOS: Files Petition to Reorganize
---------------------------------------------------
Compania de Servicios Monasterio S.A. filed a "Concurso
Preventivo" motion, reports La Nacion. The Company is seeking to
reorganize its finances after defaulting on scheduled debt
payments.

The Company's case is pending before Court No. 6 of Buenos
Aires' civil and commercial tribunal. The city's clerk no. 12
assists the Court on this case.

CONTACT: Compania de Servicios Monasterio S.A.
         Avda Cabildo 2510
         Buenos Aires


CRESUD: Convertible Notes Holder Exercises Conversion Rights
------------------------------------------------------------
Cresud S.A.C.I.F. y A. (Nasdaq: CRESY - News; BCBA: CRES), a
leading Argentine producer of agricultural products, informed
the Bolsa de Comercio de Buenos Aires and the Comision Nacional
de Valores that a holder of Company's Convertible Notes
exercised its conversion rights. Hence, the financial
indebtedness of the Company shall be reduced in US$225,000 and
an increase of 443,087 ordinary shares face value pesos 1 (V$N
1) each was made. The conversion was performed according to
terms and conditions established in the prospectus of issuance
at the conversion rate of 1.96928 shares, face value pesos 1 per
Convertible Note of face value US$ 1. As a result of that
conversion the amount of shares of the Company goes from
151,285,377 to 151,728,464. On the other hand, the amount of
registered Convertible Notes is US$ 42,778,014.

CONTACT: Mr. Gabriel Blasi - CFO
         Phone: +011-54-11-4323-7449
         e-mail: finanzas@cresud.com.ar
         Web Site: http://www.cresud.com.ar


DARRIAN S.A.: Gets Court Ok for Reorganization
----------------------------------------------
Darrian S.A. begins reorganization following the approval of its
petition by Court No. 15 of Buenos Aires' civil and commercial
tribunal. The opening of the reorganization allows the Company
to negotiate a settlement with its creditors in order to avoid a
straight liquidation.

Mr. Roberto Oscar Hermida will oversee the reorganization
proceedings as the Court-appointed trustee. He will verify
creditors' claims until December 15. Afterwards, the validated
claims will be presented in Court as individual reports on
February 25, 2005.

The trustee is further required by the Court to submit a general
report essentially auditing the Company's accounting and
business records as well as summarizing important events
pertaining to the reorganization. This report will be presented
in Court on April 12, 2004.

The Informative Assembly, the final stage of a reorganization
where the settlement proposal is presented to the Company's
creditors for approval, is scheduled on August 29, 2005.

CONTACT: Mr. Roberto Oscar Hermida, Trustee
         Tucuman 1668
         Buenos Aires


DEBO S.A.: Liquidates Assets to Pay Debts
-----------------------------------------
Debo S.A. will begin liquidating its assets following the
bankruptcy pronouncement issued by Court No. 2 of Buenos Aires'
civil and commercial tribunal, Infobae reports.

The ruling places the Company under the supervision of court-
appointed Trustee Sergio Leonardo Novick. The trustee will
verify creditors' proofs of claims until February 14, 2005.
Next, the validated claims will be presented in Court as
individual reports on April 11, 2005.

The trustee will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on May 23, 2005.

CONTACT: Debo S.A.
         Avda Santa Fe 3159
         Buenos Aires

         Mr. Sergio Leonardo Novick, Trustee
         Libertad 359
         Buenos Aires


DISENO E IMAGEN: Enters Bankruptcy on Court Orders
--------------------------------------------------
Court No. 14 of Buenos Aires' civil and commercial tribunal
declared Diseno e Imagen S.A. bankrupt after the Company
defaulted on its debt payments. The bankruptcy order effectively
places the Company's affairs as well as its assets under the
control of court-appointed Trustee Alberto Jorge Rotenberg.

As trustee, Mr. Rotenberg is tasked with verifying the
authenticity of claims presented by the Company's creditors. The
verification phase is ongoing until February 14, 2005.

Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the Court on March 30, 2005. A general report will
also be submitted on May 13, 2005.

Infobae reports that the city's Clerk no. 28 assists the Court
on this case that will end with the disposal of the Company's
assets to repay its debts.

CONTACT: Mr. Alberto Jorge Rotenberg, Trustee
         Avda Cordoba 1336
         Buenos Aires


EXPORIALE S.R.L.: Court Rules for Liquidation
---------------------------------------------
Court No. 16 of Buenos Aires civil and commercial tribunal
ordered the liquidation of Exporiale S.R.L. after the Company
defaulted on its debt obligations, Infobae reveals. The
liquidation pronouncement will effectively place the Company's
affairs as well as its assets under the control of Mr. Miguel
Antonio Suppicich, the court-appointed trustee.

Mr. Suppicich will verify creditors' proofs of claims until
December 27. The verified claims will serve as basis for the
individual reports to be submitted in Court on March 9, 2005.
The submission of the general report follows on April 22, 2005.

Clerk No. 32 assists the Court on this case that will end with
the disposal of the Company's assets to repay creditors.

CONTACT: Mr. Miguel Antonio Suppicich, Trustee
         Avda Argentina 5785
         Buenos Aires


IMPSA: Fitch Argentina Maintains Ratings on Corporate Bonds
-----------------------------------------------------------
Fitch Argentina Calificadora de Riego S.A maintains a `D(arg)'
rating on US$150 million worth of corporate bonds issued by
Industrias Metalurgicas Pescarmona SA (IMPSA), the CNV says.

The affected bonds, issued under "series and/or class," were
described as "2 Serie emitida por US$150 millones del Programa
Global de US$ 250 millones." The bonds expired on May 30, 2002.

A `D (arg)'' rating indicates a Company has defaulted on its
financial commitment.

At the same time, Fitch maintains a `C(arg)' rating on US$250
million worth of IMPSA's bonds, which were classified under
program and described as "Programa de obligaciones negociables."
The bonds expired on June 2, 2004

A `C(arg)' rating indicates a highly uncertain capacity for
timely payment of financial commitments relative to other
issuers or issues in the same country. Capacity or meeting
financial commitments is solely reliant upon a sustained,
favorable business and economic environment, said Fitch.

The ratings assigned were based on IMPSA's financial health as
of June 30, 2004

CONTACT: Industrias Metalurgicas Pescarmona S.A.
         Latin America
         Mr. Hernan Guinazu
         Carril Rodriguez Pena 2451
        (M5503AHY) Godoy Cruz, Mendoza
         Argentina.
         Phone: (+54-261) 4131374
         Fax:(+54-261) 4131429 - 4131423
         e-mail: guinazu@impsa.com.ar

         Web Site: www.impsa.com.ar


JERGON S.R.L.: Liquidates Assets to Pay Debts
---------------------------------------------
Buenos Aires-based Jergon S.R.L. will begin liquidating its
assets following the pronouncement of the city's civil and
commercial Court No. 18 that the Company is bankrupt, reports
Infobae.

The ruling places the Company under the supervision of court-
appointed Trustee Shizue Matayoshi. The trustee will verify
creditors' proofs of claims until February 7, 2005. The
validated claims will be presented in Court as individual
reports on March 21, 2005.

The trustee will also submit a general report, containing a
summary of the Company's financial status as well as relevant
events pertaining to the bankruptcy, on May 2, 2005.

CONTACT: Jergon S.R.L.
         Larraya 3424
         Buenos Aires

         Mr. Shizue Matayoshi, Trustee
         Viamonte 1337
         Buenos Aires


LITTLE PALACE: Enters Bankruptcy on Court Orders
------------------------------------------------
Little Palace S.A. enters bankruptcy protection after Court No.
26 of Buenos Aires' civil and commercial tribunal, with the
assistance of Clerk No. 51, ordered the Company's liquidation.

Infobae reports that the Court selected Mr. Pablo Alberto Amante
as trustee. She will be verifying creditors' proofs of claims
until the end of the verification phase on February 10, 2005.

Argentine bankruptcy law requires the trustee to provide the
Court with individual reports on the forwarded claims and a
general report containing an audit of the Company's accounting
and business records. The individual reports will be submitted
on March 28, 2005 followed by the general report that is due on
May 9, 2005.

CONTACT: Little Palace S.A.
         Guemes 3856
         Buenos Aires

         Mr. Pablo Alberto Amante, Trustee
         Lavalle 1537
         Buenos Aires


MARMOLERIA PRINGLES: Court Grants Reorganization Plea
-----------------------------------------------------
Marmoleria Pringles de Miguel Fama y Avelino Alvarez S.H.
successfully petitioned for reorganization after Court No. 3 of
La Matanza's civil and commercial tribunal issued a resolution
opening the Company's insolvency proceedings.

Under insolvency protection, the Company will continue to manage
its assets subject to certain conditions imposed by Argentine
law and the oversight of a Court-appointed trustee.

Infobae relates that Mr. Carlos Felix Ocaranza will serve as
trustee during the course of the reorganization. He will be
accepting creditors' proofs of claims for verification until
December 29.

After the verification deadline, the trustee will prepare the
individual reports and submit it in Court on March 11, 2005. The
firm will also present a general report for Court review on
April 22, 2005.

The Company is scheduled to endorse a settlement proposal for
approval by the creditors during the informative assembly on
October 7, 2005.

CONTACT: Mr. Carlos Felix Ocaranza, Trustee
         Ignacio Arieta 2912
         La Matanza


MASTELLONE HERMANOS: S&P Affirms `raD' Rating on Bonds
------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintained the `raD' rating given to US$150 million worth of
corporate bonds issued by Mastellone Hermanos S.A., the CNV
reveals in its Web site.

The bonds were classified as `Program' and described as
"Programa de Obligaciones Negociables autorizado por AGE de
fechas 11 y 23.6.99."

Also, S&P assigned an `raD' rating to another US$225 million
worth of bonds from the Company. The affected bonds are
described as "Obligaciones Negociables, autorizadas por AGE de
fecha 28.8.97." with final maturity on April 1, 2008.

S&P gives the `raD' rating to financial obligations that are
currently in default. The ratings agency said that the same
rating may be issued if interest or principal payments are not
made on the due even if the applicable grace period has not
expired.

The ratings given were based on the Company's finances as of
September 30, 2004.


PETROBRAS ENERGIA: October Oil, Gas Production Falls 1.6%
---------------------------------------------------------
Argentine energy producer Petrobras Energia revealed total oil
and gas production of 171,000 barrels of oil equivalent a day
(boe/d) in October 2004, 1.6% lower than the production in the
same month in 2003.

But according to a Business News Americas report, production
increased 1.4% from 168,600boe/d in September this year.

Total oil production in Argentina, Venezuela, Peru, Bolivia and
Ecuador fell 0.5% to 122,800boe/d in October 2004, while gas
production fell 4.2% to 48,200boe/d.

Petrobras Energia is a subsidiary of Brazil's federal energy
company Petrobras (NYSE: PBR).

CONTACTS:  Daniel E. Rennis
           E-mail: drennis@petrobrasenergia.com
           Alberto Jankowski
           E-mail: ajankows@petrobrasenergia.com
           Tel: (5411) 4344-6655


SAMBEX INVESTMENT: Court Converts Bankruptcy to Reorganization
--------------------------------------------------------------
Sambex Investment Corporation S.A., which had started
liquidation proceedings, proceeds with reorganization on orders
from Court No. 9 of Mar del Plata's civil and commercial
tribunal.

Infobae reports that the Court named Ms. Elida Zuanetti as the
Company's trustee. The trustee will conduct the credit
verification process "por via incidental."

CONTACT: Sambex Investment Corporation S.A.
         Gascon 1749
         Mar del Plata

         Mr. Elida Zuanetti, Trustee
         Avda Colon 3130
         Mar del Plata



===========
B R A Z I L
===========

BANCO SANTOS: Moody's Attempts to Explain Reasons for Downgrade
---------------------------------------------------------------
Moody's Investors Service will release a report in the coming
days commenting further on the factors behind its recent
downgrade of Brazilian bank Banco Santos' ratings.

On Nov. 15, Moody's lowered the rating on the Sao Paulo-based
bank's bonds to Caa3, the third-lowest on its scale of 21
ratings, from B1. Moody's, at that time, said that the new
rating means the bonds may be in default or there may be
"present elements of danger" in relation to payments of
principal or interest.

In addition, Moody's also cut its financial strength rating for
the Sao Paulo-based bank to E from E+ and downgraded its local
and foreign currency deposits to Caa1 from B1.

"Essentially, the action reflected the bank's takeover by the
regulatory authorities on the basis of its solvency and
liquidity problems, but it has come to our attention that some
market participants remain uncertain about the timing of our
rating actions, as well as the specific significance of our
ratings," says Celina Vansetti-Hutchins, the team leader of the
Latin American bank analysts.

"It must be emphasized", the analyst states, "that each of
Moody's ratings addresses different credit-support and -risk
elements, which include our assessment of solvency and intrinsic
credit worth on a globally comparable basis, as well as country
and issuer-specific elements of support or constraints on
creditworthiness".

"For example," she says, "the bank financial strength rating is
a measure of the bank's intrinsic safety and soundness and, as
such, excludes certain external credit risks and credit support
elements". She explained that banks rated in the "very weak" E
range, such as Banco Santos, display very modest intrinsic
financial strength, with a higher likelihood of periodic outside
support or outside assistance.

"The global local currency rating of B1", the analyst said, "is
an indication of the bank's ability to repay its obligations in
local currency, and banks rated in the B category for deposits,
including Banco Santos, offer generally poor credit quality."


CEMIG: Notifies Suppliers of Changes From De-Verticalization
------------------------------------------------------------
As ordered by Law 10848/04, Cemig is undergoing a process of de-
verticalization (otherwise known as "unbundling") of its
electricity generation, transmission and distribution activities
into different companies. As a result of the process, these
activities that have until now been run by a single Company (the
present Cemig), will be run and operated by two different
companies starting in January 2005.

As part of the process, the present legal entity CEMIG will be
maintained, as a holding Company. It will own all the shares of
the new subsidiaries, which will carry out the activities of:

(I) electricity generation and transmission - CEMIG Geracao e
Transmissao S/A; and

(II) distribution - CEMIG Distribuicao S/A.

These two wholly owned subsidiaries, which are being formed,
will begin operating on January 1, 2005, after authorization by
Aneel and approval by a Meeting of Stockholders of the Company.
The holding Company will control the new subsidiaries, giving
continuity to the Cemig brand name, and ensuring the uniformity
and cohesion of the group.

The separation will require the transfer of goods and assets
(generation plant, substations, transmission and distribution
lines, vehicles, computers, etc.), and rights and obligations of
the concession-holding Company Cemig to the new companies that
will be created:

- COMPANHIA ENERGETICA DE MINAS GERAIS S.A. - CNPJ:
17.155.730/0001-64

- CEMIG DISTRIBUICAO S.A. - CNPJ: 06.981.180/0001-16

- CEMIG GERACAO E TRANSMISSAO S.A. - CNPJ: 06.981.176/0001-58

The instruments that guarantee rights and obligations include
Contracts for Provision of Services and Acquisition of Material,
and to enable these to be legalized under the new structure will
require changes to be formalized through Amendments, which Cemig
will prepare and submit to you for signature.

It is important to clarify that these changes are solely for the
purpose of changing the name, CNPJ number, state and municipal
tax number, and invoice delivery address of the client Company
in each contract - to establish the legal link between the
supply and the Company receiving and using the goods or
services.

We would emphasize that, in some cases, the original contract
will have to be separated into as many as three (3) new
contracts, which will result in the need to issue separate tax
invoices - to enable the costs of services or material covered
by them to be passed to the new companies.

To ensure continuation of normal payment, starting in the month
of January 2005, for tax invoices linked to contracts, purchase
orders or delivery orders issued, we would ask for your
attention to the changes in Company names, CNPJ, and state and
municipal tax numbers of your client Company. These will be
provided very soon.

The process of payment of suppliers will take place normally, by
means of delivery of invoices and their acceptance by Cemig up
to 13 December 2004 We also have to inform you that, in the
period from 4 December 2004 to 2 January 2005, CEMIG'S central
materials warehouse will not receive any material, because it
will be closed for inventory.

To deal with any doubts or exceptions, please contact Cemig as
follows:

Subjects related to contracts the Cemig department that manages
the contract;
  Accounts Receivable   dial (031) 3299-3884 or 3299-3769;
  Materials warehouse   dial (031) 3389-2233.

We apologize for the inconvenience, and feel sure that we can
count on your understanding and support.

CONTACT: Cemig
         Av.Barbacena, 1200
         Santo Agostinho - CEP 30190-131
         Belo Horizonte
         Brasil
         Fax: (0XX31)3299-3934
         Phone: (0XX31)3299-4524



=============
J A M A I C A
=============

AIR JAMAICA: Government Eyeing Additional 20% Stake
---------------------------------------------------
Air Jamaica could move closer to clearing its books of US$110
million in fees and back taxes owed to the government if a debt-
for-equity exchange materializes.

Europe Intelligence Wire reports that the Jamaican government is
negotiating to increase its stake in the troubled carrier from
the current 25 percent to 45 percent. The government's show of
support will help boost the airline's image in the wake of
criticism over its mounting US$682 million debt. Air Jamaica has
also drawn flak for losing close to US$560 million since it's
1994 privatization.

Chairman Gordon Stewart, however, clarified that the airline has
not avoided its debt responsibility to the government. In fact,
he claims that the airline has paid US$160 million in taxes and
fees over the last ten years.



===========
M E X I C O
===========

BANAMEX: Proceeds with Liquidation of New York Agency
-----------------------------------------------------
           Notice to Customers and Creditors
                          of
             Banco Nacional de Mexico S.A.,
          Integrante del Grupo Financiero Banamex

On or about November 22, 2004, Banco Nacional de Mexico, S.A.,
integrante del Grupo Financiero Banamex (Banamex) will commence
the voluntary liquidation of its New York Agency, located at 767
Fifth Avenue, New York, New York, under the provisions of
Section 605.11(c) of the New York State Banking Law. Upon
completion thereof, all business related thereto shall be
conducted from the bank's offices located in Mexico. All
inquiries with respect to the liquidation and winding-up of the
New York agency of Banmex should be directed to:

   Mr. Charles E. Guiliani
   General Manager
   New York Agency
   Banco Nacional de Mexico S.A.,
   integrante del Grupo Financiero Banamex
   767 Fifth Avenue, Eighth Floor
   New York, NY 10153
   Phone: (212) 303-1469

on or before December 30, 2004.


PEMEX: Announces Discovery of Heavy Crude Oil in Deep Waters
------------------------------------------------------------
During 2004, Pemex Exploracion y Produccion started and
completed within the Gulf's Mexican Waters, the drilling of the
first underwater well surpassing 500 meters deep. In the
petroleum industry, drilling beyond this depth is considered
deepwater drilling.

This first well, dubbed Nab-1, is located approximately, 145
kilometers Northeast of Ciudad del Carmen, Campeche, and 681
meters deep under water. The drilling of the well began on April
27, and concluded on November 8, 2004, reaching a depth of 4,050
meters in the Kimmeridgian Upper Jurassic.

Well production test analyses at 2,800 meters deep revealed the
presence of heavy crude oil (9 API). This test used an
electrocentrifuge pumping system producing over 1,200 barrels of
oil per day. It is worth mentioning that this discovery confirms
the presence of heavy crude oil in an area evolving into deep
waters. This area, close to Nab, has been previously delimited
with successful drilling shallow waters (less than 500 meters
deep) of other wells, such as Num n, Baksha and Pohp.

Preliminary information obtained from Nab1, estimates an
original volume of hydrocarbons above 200 million barrels of
crude oil equivalent. The reserve associated to this volume,
namely, the original volume fraction potentially productive is
in the evaluation process and its estimate will be announced
during the first quarter of 2005.

This information does not represent any change on the proved
hydrocarbon reserves that have been disclosed in the 2003 Annual
Report and the Form 20-F of Petroleos Mexicanos filed to the
Mexican Stock Exchange and the U.S. Securities and Exchange
Commission.



=======
P E R U
=======

TDP: Welcomes New President
---------------------------
Javier Nadal has resigned from his post as president of
Telefonica del Peru (TDP) to take on the job as General Director
of Institutional Relations and Foundation, reports Dow Jones
Newswires.

Taking over Nadal's former post is Brazilian Antonio Carlos
Valente, who is currently responsible for regulatory issues for
the Telefonica SA (TEF) group in Latin America.

The shuffle comes as telecommunications regulatory agency
Osiptel is looking at Telefonica Moviles SAC's purchase of
BellSouth Peru SA at the request of Peru's Ministry of Transport
and Communications.

BellSouth Corp.(BLS) has sold wireless operations in five Latin
American countries, including Peru, to Telefonica SA units. With
the purchase, Telefonica holds about 73% of the mobile phone
market in Peru.



=================
V E N E Z U E L A
=================

PDVSA: To Create Gas JV With Russian Firm
-----------------------------------------
Petroleos de Venezuela (PdVSA) and Russian oil Company Lukoil
are contemplating the creation of a joint venture to develop oil
and natural gas projects in the South American country, Dow
Jones Newswires reports, citing a PDVSA executive.

Eulogio Del Pino, PdVSA's director for strategic associations,
indicated that PDVSA would hold 51% and Lukoil 49% of the
investment tie-up under consideration.

"We haven't yet held discussions on the size of investments
required or the structure of financing," Del Pino said. "That
will come later."

Lukoil plans to study the possibility of participating in gas
projects in Venezuela, said Andrei Kuzyaev, president of the
Company's foreign production operator Lukoil Overseas.

He said the initial stage of cooperation with Venezuelan
companies will be to concentrate on oil projects. Venezuela
plans to increase oil production 1.5 to 2 times and Lukoil plans
to take part in this process.

"We will begin with oil, which we know the best. The gas sector
is the second step in our cooperation," he said.



                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. John D. Resnick, Edem Psamathe P. Alfeche and
Lucilo Junior M. Pinili, Editors.

Copyright 2004.  All rights reserved.  ISSN 1529-2746.

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