TCRLA_Public/050125.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

           Tuesday, January 25, 2005, Vol. 6, Issue 17


                            Headlines

A R G E N T I N A

CENTRAL COSTANERA: Net Profit Soars in 4Q04, FY 2004
CLINICEN S.A.: Court Converts Bankruptcy to Reorganization
EDENOR/EDESUR/EDELAP: Enre Publishes Rate Hikes
* ARGENTINA: GCAB Begins Roadshow in Opposition of Offer


B A R B A D O S

C&W BARBADOS: FTC Ruling Could Hamper Telecom Liberalization


B E R M U D A

AMERICAN INVESTORS: First Creditors Meeting Set for Feb. 23
INTELSAT: S&P Lowers Ratings to Junk Status
SENATE INSURANCE: Creditors to Vote on Permanent Liquidator
TELIGENT AMERICAS: Proceeds With Wind-Up
TELIGENT ASIA PACIFIC: Claims Check To End Feb. 4

TELIGENT INTERNATIONAL: Enters Voluntary Liquidation Process
TWIN INTERNATIONAL: Names Nicholas Hoskins as Liquidator


B R A Z I L

AMBEV: Moody's Changes B1 FC Issuer Rating Outlook To Positive
AMBEV: Not Engaged in Acquisition Talks with Bavaria
BANCO ITAU: S&P Rates Notes `BB-'
BANCO SANTOS: Creditors Want Owner To Put Up Money
COPEL: Nears Cooperation Agreement With Canadian Firm

COPEL: Shuffles Management Team
CSN: Fitch Rates $200M, 10-year Issuance 'BB-'
NET SERVICOS: Executes Instruments Related to Restructuring
NET SERVICOS: Shareholders Meeting Set for Feb. 4


E C U A D O R

PETROECUADOR: Government Calls For Service Contract Proposals


M E X I C O

GRUPO MEXICO: Fitch Upgrades Local, Foreign Currency Ratings
TV AZTECA: CNBV Awaits Response From Accused Execs, Directors


V E N E Z U E L A

PDVSA: Inks New Collective Contract With Oil Unions
PDVSA: Woes Caused by Strike Blamed For Bond Payment Delay
PDVSA: Reviews Costly Operating Contracts

     -  -  -  -  -  -  -  -

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

CENTRAL COSTANERA: Net Profit Soars in 4Q04, FY 2004
----------------------------------------------------
Argentine thermo generator Central Costanera saw its net profit
jump to ARS23 million in the fourth quarter of 2004 from a
profit of ARS14.6 million in the year-ago period.

According to Dow Jones Newswires, the Company's profit for the
entire year also jumped to ARS65.2 million from ARS36 million in
2003.

Higher profits, according to the Company, were due to increased
net sales, which rose to ARS616.4 million in 2004, compared with
ARS384.9 million in 2003. Fourth quarter net sales rose to
ARS134.6 million for the period, well up from ARS91.9 a year
earlier.

Central Costanera, however, said its operating costs during 2004
nearly doubled to ARS414 million, compared with ARS210.3 million
in 2003 because the company had to rely - most notably during
the winter season's second and third quarters - on costlier
alternative liquid fuels due to a shortfall in natural gas
supplies.

It caught a break from exchange rate movements in 2004, booking
an ARS2.8 million financial results gain, reversing on losses of
ARS24.9 million in 2003.

CONTACT:  CENTRAL COSTANERA SA
          Avenida Espana 3301
          Buenos Aires, 1107
          ARGENTINA
          +54 11 4307 3040/49
          +54 1 4307 3040


CLINICEN S.A.: Court Converts Bankruptcy to Reorganization
----------------------------------------------------------
Clinicen S.A. proceeds with reorganization after Court No. 9 of
Santa Fe's civil and commercial tribunal converted the Company's
ongoing bankruptcy case into a "concurso preventivo," states
Infobae.

Under Insolvency protection, the Company will be able to draft a
proposal designed to settle its debts with creditors. The
reorganization also prevents an outright liquidation.

CONTACT: Clinicen S.A.
         Montevideo 953
         Rosario (Santa Fe)


EDENOR/EDESUR/EDELAP: Enre Publishes Rate Hikes
-----------------------------------------------
Argentina published Friday an increased rate schedule for the
country's top three power distributors, according to Dow Jones
Newswires.

The state energy regulator, Enre, published new schedules in the
Official Bulletin for distributors Edenor, a unit of Electricite
de France (EDF.YY); Edesur, a unit of Chile's Enarsis (ENI); and
Edelap, which is controlled by U.S.-based AES Corp. (AES). The
increases took effect Friday and retroactive to Jan. 1.

The overall increase resulting from the new rate schedules was
not immediately available. However, industry observers noted
that the increases go no further than to cover gradual rate
increases promised to power generators by government regulators
last month as part of a deal to establish a new state-run
generator- investment fund, Foninvemem.


* ARGENTINA: GCAB Begins Roadshow in Opposition of Offer
--------------------------------------------------------
Over US$1 billion in Argentine debt holders have joined GCAB in
the past 24 hours.

The Global Committee of Argentina Bondholders (GCAB) is
commencing a series of investor presentations in opposition of
Argentina's restructuring offer, arguing that it is unilateral
and coercive in nature. The Steering Committee will present its
views on likely participation rates, official sector involvement
and proposed terms they would be willing to endorse.

GCAB will travel to various cities in Europe this week, as
follows. Details of the US roadshow to be released shortly.

    Monday, January 24: London - 4:00 p.m.

     Bear Stearns International, Ltd.
     One Canada Square
     London E14 5AD
     Tel. +44 207 516 6000

    Tuesday, January 25:

     Geneva - 9:30 a.m.
     L'Hotel du Rhone
     Mandarin Oriental
     Quai Turrettini, 1 1201
     Tel. +022 909 0001

     Zurich - 3:30 p.m.
     Swiss Exchange
     Convention Point
     Selnaustrasse 30
     Geneva 8021 Zurich
     Tel. +058 854 23 10

    Wednesday, January 26: Frankfurt - 10:00 a.m.

     Frankfurt Hilton
     Hochstrasse 4
     Frankfurt am Main, DE 60313
     Tel. +49 69 13380

    Thursday, January 27:

     Milan - 10:00 a.m.
     Associazione Bancaria Italiana
     Via della Posta, 3 - 5th floor
     20123 Milano
     Tel. +39 02 72101 241

     Lugano - 4:00 p.m.
     Details to be announced.

    Friday, January 28: Rome - 10:30 a.m.

     Associazione Bancaria Italiana
     Piazza del Gesu, 49 - 1st floor
     00186 Roma
     Tel. +39 06 6767 602 / 603

    RSVP
    If you would like to attend any of the above meetings,
please:
     (i) contact your GCAB representative directly;
     (ii) contact your Bear Stearns salesperson; or
     (iii) contact Susie Ustariz at Bear Stearns
           Tel: 212-272-9507
           Email: sustariz@bear.com.

    About GCAB

GCAB was formally established in January 2004 by representatives
of all the major foreign bondholder constituencies of defaulted
Argentine debt, and consists of a broad-based group of holders.
The Steering Committee represents holders from Germany, Italy,
Japan, Switzerland, the USA and other countries. Its retail and
institutional members hold approximately US$40 billion in
defaulted debt of Argentina, accounting for 45% of the principal
amount of US$82 billion in outstanding Argentine debt and 73% of
all outstanding Argentine debt held outside Argentina.

GCAB Web Site: http://www.gcab.org



===============
B A R B A D O S
===============

C&W BARBADOS: FTC Ruling Could Hamper Telecom Liberalization
------------------------------------------------------------
The conditions set forth in the Memorandum of Understanding
(MOU) between the government and Cable & Wireless (C&W) could
slow down the implementation of the country's telecommunications
liberalization program.

Industry observers interviewed by the Barbados Daily Nation say
that the recent FTC ruling scrapping C&W's request for a rates
increase could imply the government's breach of the terms
described in the MOU. A breach, in effect, would set back Phase
Three of the liberalization plan that is slated to begin on
January 31.

C&W's position on the FTC ruling, presented last week,
effectively opened the 60-day period in which the alleged breach
must be remedied by the defaulting party. Under the MOU, the
aggrieved party can terminate the contract if its complaints are
not addressed within the grace period.

C&W had opposed the government's decision to junk the planned
rates increase on its domestic services because they claim that
this would place them at a competitive disadvantage. Company
officials say that existing laws directing the distribution of
55 per cent of its international revenues to the domestic
operations will eventually hurt them in a liberalized market.
The proposed rates increase then would prepare the Company to
allow its division to pay for itself in an environment of cost-
oriented pricing.



=============
B E R M U D A
=============

AMERICAN INVESTORS: First Creditors Meeting Set for Feb. 23
-----------------------------------------------------------
  IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP)

                            And

          IN THE MATTER OF THE COMPANIES ACT 1981

                            And

                      IN THE MATTER OF
         American Investors Insurance (Bermuda) Ltd.

              NOTICE TO CREDITORS OF FIRST MEETING

(Under the order for Winding-up the above-named Company dated
November 19, 2004)

NOTICE IS HEREBY GIVEN that the First Meeting of creditors in
the Winding-up of American Investors Insurance (Bermuda) Ltd.
will be held at Government Administration Building, 30
Parliament Street, Hamilton HM 12, Bermuda on February 23, 2005
at 2:30 p.m. for the purpose of determining whether or not an
application is to be made to the Supreme Court of Bermuda for
the appointment of a Permanent Liquidator, in place of the
Provisional Liquidator, and a Committee of Inspection.

Proofs of Debt and Proxies to be used at the meeting must be
lodged with the Provisional Liquidator at the offices of the
Official Receiver, Government Administration Building, 30
Parliament Street, Hamilton HM 12, Bermuda, marked for the
immediate attention of Carolyn Dutton no later than 5:00 p.m. of
February 18, 2005.

DATED: January 11, 2005

Stephen E. Lowe
Official Receiver and Provisional Liquidator
American Investors Insurance (Bermuda), Ltd.


INTELSAT: S&P Lowers Ratings to Junk Status
-------------------------------------------
Satellite communications provider Intelsat's plan to sell around
US$2.55 billion in notes this week comes after Standard & Poor's
downgraded its ratings to junk status.

Reuters reported Friday that the ratings agency had lowered the
Company's corporate credit rating to "BB-Minus" from "BBB-Plus".
Its senior unsecured debt was also rated "B" from "BBB-Plus."

S&P, which classifies both ratings below investment grade,
explained that a significant increase in debt due to an expected
buyout by private equity investors triggered the downgrade.

Intelsat's note issue will include US$1.0 billion seven-year
floating-rate notes expected to yield around 500 basis points
over the 6-month LIBOR, US$750 million in 10-year notes expected
to yield about 8.50 percent and US$800 million of eight-year
notes expected to yield about 8.25 percent.

Deutsche Bank, Credit Suisse First Boston, and Lehman Brothers
will jointly organize the credit issuance.


SENATE INSURANCE: Creditors to Vote on Permanent Liquidator
-----------------------------------------------------------
   IN THE SUPREME COURT OF BERMUDA COMPANIES (WINDING-UP)

                          And

            IN THE MATTER OF THE COMPANIES ACT 1981

                          And

           IN THE MATTER OF Senate Insurance Company Ltd.

                NOTICE TO CREDITORS OF FIRST MEETING

(Under the order for Winding-up the above-named Company dated
the 22nd October, 2004)

NOTICE IS HEREBY GIVEN that the First Meeting of creditors in
the above matter will be held at Government Administration
Building, 30 Parliament Street, Hamilton HM 12, Bermuda on
February 23, 2005 at 10:30 a.m. for the purpose of determining
whether or not an application is to be made to the Supreme Court
of Bermuda for the appointment of a Permanent Liquidator, in
place of the Provisional Liquidator, and a Committee of
Inspection.

Proofs of Debt and Proxies to be used at the meeting must be
lodged with the Provisional Liquidator at the offices of the
Official Receiver, Government Administration Building, 30
Parliament Street, Hamilton HM 12, Bermuda, marked for the
immediate attention of Carolyn Dutton no later than 5:00 p.m. of
February 18, 2005.

DATED: January 11, 2005
Stephen E. Lowe
Official Receiver and Provisional Liquidator
Senate Insurance Company Ltd.


TELIGENT AMERICAS: Proceeds With Wind-Up
----------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                            And

           IN THE MATTER OF Teligent Americas Ltd.

The Members of Teligent Americas Ltd., acting by written consent
without a meeting on January 14, 2005 passed the following
resolutions:

(1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981;

(2) THAT Robin J. Mayor be and is hereby appointed Liquidator
for the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of Teligent Americas Ltd., which is being
voluntarily wound up, are required, on or before February 4,
2005 to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, and
the names and addresses of their lawyers (if any) to Robin J
Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church
Street, Hamilton, HM DX, Bermuda, the Liquidator of the said
Company, and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Members of Teligent Americas
Ltd. will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
February 28, 2005 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

(1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator; and

(2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

(3) by resolution dissolving the Company.
Dated: 21 January 2005

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda


TELIGENT ASIA PACIFIC: Claims Check To End Feb. 4
-------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                         And

        IN THE MATTER OF Teligent Asia Pacific Ltd.

The Members of Teligent Americas Ltd., acting by written consent
without a meeting on January 14, 2005 passed the following
resolutions:

(1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981;

(2) THAT Robin J. Mayor be and is hereby appointed Liquidator
for the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of Teligent Americas Ltd., which is being
voluntarily wound up, are required, on or before February 4,
2005 to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, and
the names and addresses of their lawyers (if any) to Robin J
Mayor, the undersigned, at Messrs. Conyers Dill & Pearman,
Clarendon House, Church Street, Hamilton, HM DX, Bermuda, the
Liquidator of the said Company, and if so required by notice in
writing from the said Liquidator, and personally or by their
lawyers, to come in and prove their debts or claims at such time
and place as shall be specified in such notice, or in default
thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

- A final general meeting of the Members of Teligent Americas
Ltd. will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
February 28, 2005 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

(1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator; and

(2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

(3) by resolution dissolving the Company.

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda


TELIGENT INTERNATIONAL: Enters Voluntary Liquidation Process
------------------------------------------------------------
           IN THE MATTER OF THE COMPANIES ACT 1981

                           And

          IN THE MATTER OF Teligent International Ltd.

The Members of Teligent International Ltd., acting by written
consent without a meeting on January 14, 2005 passed the
following resolutions:

(1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981;

(2) THAT Robin J. Mayor be and is hereby appointed Liquidator
for the purposes of such winding-up, such appointment to be
effective forthwith.

The Liquidator informs that:

- Creditors of Teligent International Ltd., which is being
voluntarily wound up, are required, on or before February 4,
2005 to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, and
the names and addresses of their lawyers (if any) to Robin J
Mayor at Messrs. Conyers Dill & Pearman, Clarendon House, Church
Street, Hamilton, HM DX, Bermuda, the Liquidator of the said
Company, and if so required by notice in writing from the said
Liquidator, and personally or by their lawyers, to come in and
prove their debts or claims at such time and place as shall be
specified in such notice, or in default thereof they will be
excluded from the benefit of any distribution made before such
debts are proved.

- A final general meeting of the Members of Teligent
International Ltd. will be held at the offices of Messrs.
Conyers Dill & Pearman, Clarendon House, Church Street,
Hamilton, Bermuda on February 28, 2005 at 9:30 a.m., or as soon
as possible thereafter, for the purposes of:

(1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator; and

(2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

(3) by resolution dissolving the Company.

CONTACT: Mr. Robin J. Mayor, Liquidator
         Clarendon House
         Church Street
         Hamilton, Bermuda


TWIN INTERNATIONAL: Names Nicholas Hoskins as Liquidator
--------------------------------------------------------
          IN THE MATTER OF THE COMPANIES ACT 1981

                        And

      IN THE MATTER OF Twin International Fund, Ltd.

The following resolutions of Twin International Fund, Ltd., were
adopted by the sole Member by written consent on January 18,
2005:

(a) that the Company be wound up voluntarily pursuant to the
provisions of The Companies Act, 1981; and

(b) that Nicholas Hoskins be appointed Liquidator for the
purposes of such winding-up, such appointment to be effective
forthwith.

The Liquidator informs that:

- Creditors of Twin International Fund, Ltd., which is being
voluntarily wound up, are required, on or before February 16,
2005 to send their full Christian and Surnames, their addresses
and descriptions, full particulars of their debts or claims, and
the names and addresses of their attorneys (if any) to the
undersigned Liquidator of the said Company at Wakefield Quin,
Chancery Hall, 52 Reid Street, Hamilton, Bermuda and if so
required by notice in writing from the said Liquidator, and
personally or by their attorneys, to come in and prove their
debts or claims at such time and place as shall be specified in
such notice, or in default thereof they will be excluded from
the benefit of any distribution made before such debts are
proved.

- A Final General Meeting of the Members of Twin International
Fund, Ltd. will be held at the offices of Wakefield Quin,
Chancery Hall, 52 Reid Street, Hamilton, Bermuda on February 25,
2005 at 10:00 a.m., or soon as possible thereafter, for the
purposes of: having an account laid before them showing the
manner in which the winding-up has been conducted and how the
property of the Company has been disposed of and of hearing any
explanation that may be given by the Liquidator; determining by
Resolution the manner in which the books, accounts and documents
of the Company and of the Liquidator thereof, shall be disposed
of; and by Resolution dissolving the Company.

CONTACT: Mr. Nicholas Hoskins, Liquidator
         Chancery Hall
         52 Reid Street
         Hamilton, Bermuda



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

AMBEV: Moody's Changes B1 FC Issuer Rating Outlook To Positive
--------------------------------------------------------------
Moody's changed the outlook on the B1 foreign currency issuer
rating of Companhia de Bebidas das Americas (AmBev) to positive
from stable. The global local issuer rating of Baa3 and the
developing outlook on the global local rating remain unchanged.

The rating action is the direct result of Moody's having changed
the outlook on Brazil's B1 country ceiling for foreign currency
bonds and notes to positive.

AmBev's global local currency issuer rating of Baa3 is based on
the company's strong and profitable beer and beverage franchise
in its core market of Brazil, and its strong presence in many
other markets. In August 2004, the Company established a
business combination with Interbrew (now InBev) to form the
largest beer producer by volume globally. AmBev gained control
of Labatt in Canada, and assumed CA$1.3 billion of debt. Moody's
does not rate debt at Labatt. The developing outlook on the
global local currency issuer rating reflects remaining
uncertainties related to the transaction, some of which could
have either positive or negative impact on this rating. These
uncertainties include the ultimate structure of the North
American subsidiary debt.

AmBev, based in Sao Paulo, Brazil, is the largest brewer in
Latin America.


AMBEV: Not Engaged in Acquisition Talks with Bavaria
----------------------------------------------------
Companhia de Bebidas das Americas -- AmBev (NYSE:ABV)
(NYSE:ABVc) (BOVESPA:AMBV4) (BOVESPA:AMBV3), in view of market
rumors about its possible acquisition of Grupo Empresarial
Bavaria, announces that it has not engaged in negotiations with
the aforementioned company to acquire it.


BANCO ITAU: S&P Rates Notes `BB-'
---------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' foreign-
currency long-term senior unsecured debt rating to Banco Itau
S.A.'s $125 million eurobonds issued in January 2005 with a
coupon of 4.375% (annual), maturing on Jan. 31, 2008. The local-
currency counterparty credit ratings on the bank are
'BB/Stable/B' and the foreign-currency counterparty credit
ratings are 'BB-/Stable/B'.

"The local currency rating on Banco Itau S.A. incorporates its
exposure to the economic risk of the Brazilian financial system.
The rating benefits from the bank's strong, well-diversified
business profile, professional management team, focused
strategy, and above-average profitability," said Standard &
Poor's credit analyst Tamara Berenholc.

As with all banks operating in Brazil, Banco Itau is exposed to
the economic risk of the Brazilian financial system through its
direct exposure to government risk in the form of open market
operations and marketable securities. At September 2004, its
total government exposure was equivalent to approximately 1.7x
its capital. This is, however, among the lowest when compared to
that of its retail peers.

Banco Itau remains one of the most creditworthy institutions in
Brazil. With Brazilian reais (BrR) 138.5 billion in assets
($48.5 billion at BrR2.86 to $1) at September 2004, Itau
maintains its position as the second-largest private bank in the
country, with an extensive branch network to service
approximately 9.3 million active clients. The bank continues to
focus on delivering financial services products within Brazil
and internationally. Besides, with the acquisition of Banco BBA
Creditanstalt, the group reinforced its position as a wholesale
bank.

The stable outlook on the local-currency counterparty credit
rating incorporates the economic risks of the Brazilian banking
industry and balances the bank's good business profile and
superior profitability with the maintenance of adequate asset
quality indicators. In the event of a downgrade or negative
change for the local currency sovereign credit rating/outlook on
Brazil, the local currency credit rating on Banco Itau would
move in tandem. If, on the other hand, the sovereign local
credit rating had positive changes or upgrades, the ratings on
Banco Itau would be assessed on a case-by-case basis.

The stable outlook on the foreign-currency counterparty credit
rating reflects that on the sovereign rating of Brazil.

Primary Credit Analyst: Tamara Berenholc, Sao Paulo
(55) 11-5501-8950; tamara_berenholc@standardandpoors.com

Secondary Credit Analyst(s): Milena Zaniboni, Sao Paulo
(55) 11-5501-8945; milena_zaniboni@standardandpoors.com


BANCO SANTOS: Creditors Want Owner To Put Up Money
--------------------------------------------------
As part of an effort to avoid a liquidation of intervened
Brazilian bank Banco Santos, a creditors' committee represented
by KPMG is demanding that the bank's controller put up financial
resources, reports Business News Americas.

KPMG's corporate recovery director Eduardo Farhat said the
group, which has a BRL500-million (US$186mn) claim on Banco
Santos, wants the bank's controller Edemar Cid Ferreira to
specify how he plans to help save the ailing entity before
approving the rescue plan presented two weeks ago by the
consultancy, Valora.

Farhat also said that the creditor group opposes several of the
proposals made by Valora on how to rescue Santos.

Banco Santos, which was seized in November by Brazil's central
bank, proposed reopening under government supervision and asked
creditors and depositors to keep funds in their accounts as part
of a restructuring plan. Sao Paulo-based Santos asked creditors
to exchange debt for equity in the bank. Ferreira, for his part,
will surrender control of Santos.


COPEL: Nears Cooperation Agreement With Canadian Firm
-----------------------------------------------------
A cooperation agreement between Brazilian integrated power
provider Copel and Canada's Hydro-Quebec is likely to be signed
in the first week of February, Business News Americas indicates.

A technical group from the Canadian firm has visited Copel and
identified projects that the two companies could work on
together, including joint hydroelectric power projects on the
Iguacu River in southern Brazil.

The agreement could include technology transfer from Hydro-
Quebec to Copel, which has an installed generation capacity of
5,004MW and 6,977km of transmission lines.

CONTACT: Companhia Paranaense de Energia (COPEL)
         Investor Relations team
         Phone: (55-41) 222-2027
         E-mail: ri@copel.com

         Web site: http://http://www.copel.com/


COPEL: Shuffles Management Team
-------------------------------
Rubens Ghilardi, economist and business administrator, who is
currently Copel's Chief Distribution Officer, Chief Financial
Officer and Investor Relations Officer will be the new CEO of
the Company replacing Paulo Pimentel, who resigned of his
position to fully dedicate to the management of his corporate
group.

Ghilardi will be appointed by Copel's Board of Directors and
will take office on February 1, 2005, on the occasion of the
Board's meeting. He will maintain the CFO and IRO positions. The
new Chief Distribution Officer will be Ronald Thadeu Ravedutti,
economist, who is currently Copel's Chief Corporate Management
Officer.

Luiz Antonio Rossafa , engineer, president of Crea/PR
(Engineering and Architecture Association) and a member of
Copel's Board of Directors since January 2003, will be the new
Chief Corporate Management Officer.

Assis Correa will remain as the Chief Legal Officer and Jose
Ivan Morozowski as Chief Generation and Transmission and
Telecommunication Officer.

The new CEO Rubens Ghilardi, 64 years old, has been working for
Copel for the last 28 years. From 1987 to 1993 he was the
Company's CFO. During the following 10 years, he took position
as: Escelsa's (State of Espirito Santo electric power company)
Financial and Corporate Officer, Binacional Itaipu's CFO and
President of Fibra, Itaipu's pension fund. In May 2003 he
returned to Copel as Chief Distribution Officer.

Since September 21, 2004 he has been Copel's Chief Distribution
Officer, Chief Financial Officer and Investor Relations Officer
(remaining in this last position).


CSN: Fitch Rates $200M, 10-year Issuance 'BB-'
----------------------------------------------
Fitch Ratings has assigned a 'BB-,' foreign currency rating to
Companhia Siderurgica Nacional's (CSN) US$200 million 10-year
notes due January 2015 issued through its subsidiary CSN Islands
IX Corp. on Jan. 21, 2005. CSN's foreign currency rating is
constrained by the Federative Republic of Brazil's 'BB-,'
foreign currency rating. Fitch affirms CSN's local currency
rating of 'BBB-' as well as the company's national scale rating
of 'AA-(bra)'. The Rating Outlook for all the ratings is Stable.

In 2004, Fitch expects CSN to generate EBITDA of approximately
BRL4.5 billion (about US$1.5 billion) due to the strong steel
price environment and an improved value-added product mix. As of
Sept. 30, 2004 CSN had total debt of BRL8.9 billion and net debt
of BRL5.3 billion. Due to the company's strong cash flow
generation, the ratings consider an expected decrease in net
debt to less than BRL5 billion by year-end 2004. For 2004, Fitch
expects CSN to have a net debt-to-EBITDA ratio of less than 1.5
times (x) and a total debt-to-EBITDA ratio of less than 2.0x.

The proceeds of this US$200 million issuance will be used
primarily to refinance upcoming debt obligations. Over the next
several years, debt reduction will be constrained by
management's view of its optimal capital structure, the
company's capital expenditure plans and the debt-service
requirements of CSN's controlling shareholder, Vicunha
Siderurgia S.A. (Vicunha). Vicunha has a 46.5% stake in CSN but
no operating assets to generate cash flow. Although CSN is not
obligated to directly service Vicunha's debt, CSN paid dividends
of nearly BRL800 million in 2004 to allow Vicunha to make
interest and principal payments of approximately BRL350 million
on its debentures. In order for Vicunha to continue meeting its
debenture obligations, CSN expects its dividend payment to be
about BRL950 million in 2005.

CSN's ratings are supported by the Company's position as one of
the industry's lowest cost steel producers. CSN's low-cost
structure is due primarily to its ownership of the Casa de Pedra
mine, one of the world's largest high-quality iron ore bodies.
The company also benefits from its modern production facilities,
vertical integration and access to low-cost labor. These factors
allow CSN to generate positive cash flows during troughs in the
steel cycle and economic downturns in Brazil. The ratings also
consider the concentrated nature of the Brazilian steel
industry, which limits competition based solely upon price.
Competition from foreign steel imports into Brazil is minimal.
Barriers to entry include the logistical challenges of
transporting steel to Brazil and within Brazil, as foreign steel
producers have limited access to efficient distribution
networks. In addition, foreign steel imports face tariffs of
approximately 15%.

Over the past several years, CSN has focused on modernizing and
expanding its production facilities and divesting its noncore
assets. The Company's current expansion strategy involves a
capital investment plan of up to US$780 million between 2004 and
2006. The project includes a US$310 million expansion of the
production capacity of the Casa de Pedra iron ore mine to 40
million tons from 14 million tons by mid-2006. In order to
export the increased iron ore production, CSN will also invest
about US$130 million to expand the Sepetiba port where it
currently operates a coal terminal under an exclusive concession
agreement expiring in 2047. The project may also include a
US$340 million investment to construct a 6 million-ton pellet
plant. When the mine expansion is concluded in 2006, the iron
ore export sales are expected to yield approximately US$400
million in incremental EBITDA.

Fitch believes the mine expansion project makes strategic sense
given the current pricing environment for iron ore and the
Positive Outlook for demand over the near to medium term. Iron
ore prices rose by about 18% in 2004 and are expected to again
rise significantly in 2005. These price increases, along with
those of several other commodities, have been driven by the
confluence of an improving global economy and China's surging
demand for raw materials. Although this expected incremental
cash flow from the iron ore mine expansion is significant, CSN's
credit quality will continue to be closely linked to the
performance of its steel business as approximately 80% of the
company's future cash flow will be generated from its steel
production operations.

CSN has an annual crude steel production capacity of 5.8 million
tons. Its fully integrated steel operations, located in the
state of Rio de Janeiro in Brazil, produce steel slabs and hot-
and cold-rolled coils and sheets for the automobile,
construction and appliance industries, among others. CSN also
holds leading market shares in the galvanized and tin-mill
products.

CONTACT: Anita Saha, CFA +1-312-368-3179, Chicago
         Joe Bormann, CFA +1-312-368-3349, Chicago
         Ricardo Carvalho, +55-21-4503-2627, Rio de Janeiro

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


NET SERVICOS: Executes Instruments Related to Restructuring
-----------------------------------------------------------
In its Board Of Directors' Meeting minutes, Net Servicos
recorded:

Date, time and venue:

December 21, 2004, at 3:00 pm, at the Company's headquarters
located at Rua Verbo Divino, 1356 - 1 Andar, Chacara Santo
Antonio, in the city of Sao Paulo, State of Sao Paulo.

Attendance:

Board Members representing the necessary quorum, as per the
signatures below, jointly with the Company's executive officers
(Francisco Valim, CEO, Leonardo Pereira, CFO, Jose Felix,
Operations, Ciro Kawamura, Commercial, Fernando Mousinho,
Institutional Relations, and Andre Borges, Legal Officer), all
of them attending the works.)

Presiding Board:

Jorge Luiz de Barros Nobrega - Chairman.
Andre Muller Borges - Secretary.

Deliberations:

Aligning to the deliberations of the meeting held on November 3,
2004:

1. They approved the execution of instruments (acknowledgment of
indebtedness instrument, loan agreement, promissory notes,
and/or other instruments) amending or replacing the loan
agreements or related executed with financial institutions,
under the scope of the Company's financial restructuring,
purpose of the material fact published by the Company on June
28, 2004; and

2. They increased the amount of issuance of shares to be
subscribed and paid-up by the managers participating in the
Company's financial restructuring plan, according to their
effective call option exercise, from three million (3,000,000)
to three million and five hundred thousand (3,500,000) non-par
registered, book-entry preferred shares, with subscription price
equivalent to thirty-five centavos of Real (R$ 0.35) per share,
by means of the Company's capital stock increase, within the
limit of authorized capital provided for in the Article 5 of its
By-Laws, option which may occur within two (2) years counted
from the publication date of the Notice to the Market, without
requiring a new deliberation for this purpose.

CONTACT: NET Servicos de Comunicacao S.A.
         Rua Verbo Divino 1356
         Chacara Santo Antonio
         Sao Paulo, SP 04719-002
         Brazil
         Phone: 5511-5186-2000
         Website: http://globocabo.globo.com


NET SERVICOS: Shareholders Meeting Set for Feb. 4
-------------------------------------------------
             EXTRAORDINARY GENERAL MEETING
                      CALL NOTICE

The shareholders of NET Servicos de Comunicacao S.A. ("Company")
are called to meet at the Extraordinary General Meeting to be
held on February 4, 2005, at 11:00 a.m., at the Company's
headquarters located at Rua Verbo Divino, 1356, 1 andar, in the
city of Sao Paulo, State of Sao Paulo, to deliberate on the
following AGENDA:

(a) to approve the fourth public issuance of the Company's
debentures, not convertible into shares, with real and unsecured
guarantee ("Debentures");

(b) to delegate powers to the Company's Board of Directors in
order to:

(1) rectify and deliberate on all the terms and conditions of
the Debentures, not under the exclusive incumbency of the
General Meeting, by force of the Company's By-Laws or any
applicable rule, inclusive to rectify and deliberate on the
issues mentioned in the items VI to VIII of the Article 59 of
the Law 6,404, dated December 15, 1976, and further amendments
("LSA"), and any other amendments requested by the Securities
and Exchange Commission of Brazil ("CVM"); and

(2) cancel the non-placed Debentures in the first (1st) and
second (2nd) series of the fourth public issuance of the
Company's Debentures;

(c) to authorize the Company's management to take the necessary
measures to implement and carry out all the acts and documents
necessary for the registration of the Debentures issuance with
CVM;

(d) to approve the creation of real guarantees in favor of the
titleholders of securities issued by the Company ("Multicanal
Notes") and by Net Sul Comunicacoes Ltda. ("Net Sul Notes", and,
jointly with "Multicanal Notes", "Notes") overseas, Debentures
and titleholders of securities, acknowledgment of indebtedness
instruments and bilateral loan agreements to be entered into
under the scope of the Company's financial restructuring, as
well as the approval for the execution of bilateral loan
agreements and acknowledgment of indebtedness instruments for
the purposes of the referred restructuring;

(e) to define the Company's favorable vote and of its direct and
indirect subsidiaries in general meetings and shareholders'
meetings related to the granting of surety and real guarantees
to the titleholders of acknowledgment of indebtedness
instruments and securities to be issued under the scope of the
Company's financial restructuring;

(f) to ratify the approval of the Company's capital increase
deliberated in the Board of Directors' Meeting ("RCA"), held on
November 3, 2004, in all its terms and conditions, as well as to
ratify the deliberations of RCA held on December 21, 2004,
referring to (i) the execution of acknowledgment of indebtedness
instruments, loan agreements, promissory notes, Notes and/or
other documents to be entered into under the scope of the
Company's financial restructuring; and (ii) the increase in the
number of shares to be subscribed and paid-up by the managers
taking part in the Company's financial restructuring;

(g) to approve the ratification of suspensive conditions
deliberated in the Company's RCA held on November 3, 2004, with
respect to the referred capital increase;

(h) to delegate powers to the Board of Directors to promote any
and all alteration to be necessary under suspensive conditions
set forth at the Company's RCA held on November 3, 2004, for the
realization of the capital increase under consideration; and (i)
to re-ratify the deliberations on the Company's Stock Option
Plan and its respective exercise, inclusive referring to the
examination of the Company's capital stock, with the resulting
amendment to the Article 5 of the Company's By-Laws.

The shareholders participating in the Fungible Custody of
Registered Shares of the Stock Exchanges intending to
participate in this Meeting shall submit a statement issued
forty-eight (48) hours before the Meeting, containing their
respective shareholding provided by the custody agency.

CONTACT: NET Servicos de Comunicacao S.A.
         Rua Verbo Divino 1356
         Chacara Santo Antonio
         Sao Paulo, SP 04719-002
         Brazil
         Phone: 5511-5186-2000
         Website: http://globocabo.globo.com



=============
E C U A D O R
=============

PETROECUADOR: Government Calls For Service Contract Proposals
-------------------------------------------------------------
Ecuador's energy and mines ministry published Friday the
invitation to bid for services contracts on four oil and gas
fields operated by state oil firm Petroecuador in the country's
Amazon area.

Bidding rules will be available from January 24, bids will be
received March 25 and opened that same day. Eighteen local and
international companies have pre-qualified to participate in the
oil production and services concession. These are Brazil's
Petrobras, Chile's Sipetrol, Ecuador's Tecpecuador, Argentina's
CGC, Europe's Teikoku Oil, China's Chanquing Petroleum,
Tecpetrol-Tecpecuador consortium, China's Sinopec Internacional,
Ecuador's Dygoil, Ecuador's Schlumberger Surenco, Urazul,
Colombia's SPLA consortium, Sweden's Skanska, Colombia's Hocol,
Nuevo Cerro Drag˘n-Ecuapet consortium, Amazonic Sustainable, US'
Cayman Internacional and Ecuador's Pluspetrol.

The concession, worth an estimated US$300 million, involves the
Shushufindi, Auca, Lago Agrio and Culebra-Yulebra-Anaconda
fields, which together produce some 116,000 barrels a day.
Officials hope to raise that output to 156,000 b/d. The four
fields account for 57% of Petroecuador's overall production.

Petroecuador hopes to pick a winner and sign a contract in June
or July.



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

GRUPO MEXICO: Fitch Upgrades Local, Foreign Currency Ratings
------------------------------------------------------------
Fitch Ratings has upgraded the local and foreign currency
ratings assigned to Grupo Mexico, S.A. de C. V. (Grupo Mexico)
to 'BB' from 'B-', Rating Watch Positive. The Rating Outlook for
Grupo Mexico's ratings is now Stable.

Fitch has also upgraded the local and foreign currency ratings
assigned to Minera Mexico, S.A. de C.V. (Minera Mexico) to 'BB-'
from 'B', Rating Watch Positive. Minera Mexico's 'BB-' foreign
currency rating applies to the Company's US$441 million in
guaranteed senior notes (Yankee bonds) due 2008 and 2028 as well
as to the US$600 million syndicated bank loan obtained in 2004.
The Rating Outlook for Minera Mexico's local and foreign
currency ratings is now Positive.

In conjunction with these rating actions, Fitch has upgraded the
credit rating of Americas Mining Corporation (AMC) to 'BB' from
'B', Rating Watch Positive. The Rating Outlook for AMC's rating
is now Stable. AMC is a wholly-owned subsidiary of Grupo Mexico
and is the direct parent company of Minera Mexico, Asarco Inc.
(Asarco) and Southern Peru Copper Corporation (SPCC).

In addition, Fitch has assigned a 'BBB-' local currency rating
to SPCC and has affirmed SPCC's foreign currency rating of 'BB'.
The Rating Outlook for SPCC's ratings is Stable.

Fitch has also affirmed the senior unsecured rating of 'CCC' for
Asarco and the senior unsecured local and foreign currency
ratings of 'BBB-' for Grupo Ferroviario Mexicano, S.A. de C.V.
(GFM).

Grupo Mexico's upgrade to 'BB' reflects the debt reduction
during 2004 at the holding company level and at its copper
mining entities Minera Mexico and AMC. The Company utilized
excess cash flow from extraordinarily high copper prices to
strengthen its financial profile. On a non-consolidated basis,
Grupo Mexico has essentially no debt at the holding company
level versus about US$80 million in 2003. Grupo Mexico, however,
continues to guarantee a US$75 million obligation of AMC to an
Asarco trust. The rating also considers the company's position
as a holding company with no operating assets but the ability to
receive dividends from its railway subsidiary, GFM, which
accounts for about 12% of Grupo Mexico's consolidated EBITDA. In
2004, Grupo Mexico's consolidated debt should be about US$2.6
billion while its total EBITDA is estimated to be about US$1.7
billion, resulting in a ratio of total debt-to-EBITDA of about
1.6 times (x).

Minera Mexico's upgrade to 'BB-' was a result of the significant
improvement in the company's capital structure during 2004, as
it took advantage of high copper prices to reduce its debt to an
estimated US$1 billion at the end of 2004 from US$1.3 billion at
the end of 2003. The Company also extended its debt maturities
and reduced its overall cost of debt. In 2004, Minera Mexico is
estimated to have generated more than US$650 million of
operating income plus depreciation and amortization (EBITDA), an
improvement from US$193 million in 2003. The Company also used
its excess free cash flow to improve operations at its mines and
to pay (at the end of January 2005) US$55 million to its labor
unions to settle a long-standing labor dispute. These issues
were also factored into the upgrade. Minera Mexico's Positive
Rating Outlook is due to the expectation that the Company will
reduce its total debt to less than US$800 million during 2005.
The Rating Outlook Positive status also reflects the potential
for additional improvements in the Company's debt structure as a
result of its pending acquisition by its sister company, SPCC,
as well as increased liquidity and access to the capital
markets.

The 'BBB-' local currency rating assigned to SPCC is supported
by the company's strong financial profile and competitive cost
structure. SPCC is expected to end 2004 with total debt of
US$290 million, consisting of about US$200 million in issuances
under a US$750 million local bond program and US$90 million of a
collateralized loan from Mitsui. In 2004, SPCC's EBITDA should
be more than US$800 million; this figure compares with US$290
million in 2003. Thus, in 2004, the Company's ratio of total
debt-to-EBITDA should decrease to about 0.4x from 1.2x at year-
end 2003. SPCC's local currency rating is constrained at the
'BBB-' level due to the expectation that its credit quality and
that of Minera Mexico will become more closely linked, once its
purchase of Minera Mexico is completed. The 'BB' foreign
currency rating of SPCC is constrained by Peru's 'BB' foreign
currency rating.

The upgrade of AMC's rating to 'BB' reflects debt reduction of
about US$120 million at this holding company since mid 2003. The
rating also incorporates expectations of further debt reduction
in the near term of about US$280 million. Obligations at the AMC
level total approximately US$413 million. They consist of a
US$250 million loan from Inbursa, a US$75 million environmental-
related note, and a US$88 million note to Asarco. The loan with
Inbursa is secured by the shares AMC holds in SPCC that comprise
a 54% stake in that company. Fitch's 'BB' rating of AMC, a
direct subsidiary of Grupo Mexico, reflects the fact that
obligations at the AMC level are met primarily with dividends
from SPCC.

Asarco's 'CCC' rating reflects the continued uncertainty
regarding the company's potential environmental liabilities, as
well as its inability to generate material excess cash flow due
to its high cash cost of production. Asarco is expected to end
2004 with total debt of US$440 million. Asarco's debt
obligations consist of US$250 million of unsecured bonds due in
2013 and 2025 and US$190 million in tax exempt municipal bonds
due between 2018 and 2033.

GFM's 'BBB-' local and foreign currency ratings are supported by
the company's solid competitive position, strong cash flows and
modest leverage. Due to the recovery in the U.S. economy, Fitch
expects GFM to generate about US$215 million of EBITDA in 2004,
about 5% higher than in 2003 despite the devaluation of the
Mexican peso and the increase in oil prices. GFM is expected to
end 2004 with a ratio of total debt-to-EBITDA of about 2.7x. The
level of total debt at GFM of about US$580 million (including
US$105 million for non-cancelable operating leases) is not
expected to increase in the future.

Grupo Mexico ranks as the world's third-largest copper producer
with consolidated output of approximately 850,000 tons in 2004.
Grupo Mexico's assets consist of a 54% stake in SPCC, one of the
world's largest low-cost private-sector copper producers located
in Peru. Grupo Mexico's other mining activities are consolidated
under the Minera Mexico subsidiary, Mexico's largest mining
group, and Asarco in the United States. In October 2004, Grupo
Mexico announced that SPCC's Board of Directors had approved a
proposal to purchase Minera Mexico via a cashless stock-for-
stock transaction. The transaction is pending approval by SPCC's
shareholders. In addition to mining, Grupo Mexico operates a
major railway in Mexico under its GFM subsidiary. The railway
connects Mexico's major cities and six seaports and has five
points of connection along the U.S border.


TV AZTECA: CNBV Awaits Response From Accused Execs, Directors
-------------------------------------------------------------
Mexico's National Banking and Securities Commission (CNBV),
which oversees financial activities, found magnate Ricardo
Salinas and directors of broadcaster TV Azteca (NYSE: TZA) in
violation of securities law.

According to a Business News Americas report, the securities
watchdog has already notified the executives of the potential
sanctions.

"We have given the notification. Given the processes that we
have, we accord them the right to respond to the parts where we
feel they violated the rules and are awaiting their response,"
CNBV president Jonathan Davis said.

"If later on they do not explain to us, we will officially
notify them of the sanctions," he added, without specifying how
long the CNBV would wait for an answer before it moves forward
with applying sanctions to the firm.

The CNBV is investigating a debt transaction in which TV Azteca
Chairman Ricardo Salinas pocketed US$109 million. Salinas and a
business partner both own 50% stakes in investment company
Codisco, which bought the debt of mobile phone operator Unefon
in 2003 at a steep discount and then sold it back to the company
at full value.

Between them, they made US$218 million in the Unefon deal.
Salinas owns a 46.5% stake in Unefon through TV Azteca.

On Jan. 4, the U.S. Securities and Exchange Commission (SEC)
charged TV Azteca, Salinas and two other top executives with
fraud. U.S. regulators said Salinas and the executives took part
"in an elaborate scheme to conceal Salinas' role in a series of
transactions through which he personally profited by US$109
million."

CONTACT: Investor Relations
         Mr. Bruno Rangel
         Phone: 5255 1720 9167
         E-mail: jrangelk@tvazteca.com.mx

         Mr. Omar Avila
         Phone: 5255 1720 0041
         E-mail: oavila@tvazteca.com.mx

         Media Relations:
         Mr. Tristan Canales
         Phone: 5255 1720 5786
         E-mail: tcanales@tvazteca.com.mx

         Mr. Daniel McCosh
         Phone: 5255 1720 0059
         E-mail: dmccosh@tvazteca.com.mx



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

PDVSA: Inks New Collective Contract With Oil Unions
---------------------------------------------------
State oil giant Petroleos de Venezuela (PDVSA) has successfully
negotiated a new collective contract with the nation's main oil
unions, according to Dow Jones Newswires.

On Friday, the Company and representatives from the country's
three main oil unions, Fedepetrol, Fetrahidrocarburos and
Sinutrapetrol, signed the collective employment contract for
workers in the oil sector covering the period 2005-2007.

"I would like to express my satisfaction with the agreement that
is being signed here," PDVSA president and energy and petroleum
minister Rafael Ramirez told an auditorium of oil workers and
managers from PdVSA.

According to a Veneconomy report, the new contract, which covers
44,412 workers at PDVSA, its affiliates and its contractors,
will cost VEB4.4 trillion, 54% more than the previous contract.


PDVSA: Woes Caused by Strike Blamed For Bond Payment Delay
----------------------------------------------------------
Finance Minister Nelson Merentes said that the government's
failure to pay an estimated US$35 million on oil indexed payment
obligations due Oct. 15, 2004 was due to PDVSA's administrative
woes caused by an extended oil strike two years ago.

"The failure to pay the oil obligations is mainly due to the
strike at the end of 2002," local daily El Nacional quoted
Merentes as saying.

"The oil company [took] a beating, and the courts are
recognizing what happened due to the abandonment of accounting
and the automated data base, and for that, there were
justifiable delays in the area of administration," said
Merentes.

PDVSA fired more than half of its staff in 2003 to break a
strike aimed at forcing President Hugo Chavez from office. The
firings decimated the ompany's financial and accounting
departments. The Company has yet to release results for 2003 or
2004.


PDVSA: Reviews Costly Operating Contracts
-----------------------------------------
Venezuela's Oil Minister and PDVSA president Rafael Ramirez
revealed that the state-owned oil firm is in the process of
reviewing operating agreements signed between several firms in
the 1990's.

Mr. Ramirez said in a report from the Associated Press that they
are looking into these contracts because some have turned out to
be uneconomical for PDVSA. He adds that around five of the 33
operating agreements are particularly costly for the Company.

PDVSA Awarded the operating contracts in the 1990's allowing
foreign and domestic companies to operate oil fields for a fee.
These agreements contribute to a combined production of around
500,000 barrels of oil per day.



                            ***********


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
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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