TEXT-S&P on Latin American oil and gas companies

(The following statement was released by the rating agency)

June 24 - The escalation in international oil market prices of
late--topping more than $130 a barrel--has affected Latin American rated oil
and gas companies in only limited ways, according to a report published by
Standard & Poor's Ratings Services. The report, titled "Latin American Oil &
Gas Companies See Limited Impact From Record-High Oil Prices," details the
conditions for the oil and gas business in each country in the region.

Several oil and gas producers in Latin America do not benefit fully from
the recent increase in market oil prices.

"In several cases, average realization prices are lower than
international ones because of price controls, tax effects, or government
subsidies," said Standard & Poor's credit analyst Luciano Gremone.

The respective governments control seven out of 11 rated Latin American
oil and gas companies, which ties their corporate credit ratings to the
sovereign ratings somewhat. Our country risk assessments and other business
risk factors also constrain some ratings.

Although they benefit in part from high international prices, Latin
American oil and gas firms will also face some cost pressures and require
significant working capital and capital expenditures. And we see no change in
the tight relationships with governments; these will continue to affect the
ratings.

Standard & Poor's expects the credit quality of oil and gas companies in
Latin America to remain generally stable in the coming quarters. Changes in
international oil prices should not prompt any rating actions soon.

The reports are available to subscribers of RatingsDirect, the real-time
Web-based source for Standard & Poor's credit ratings, research, and risk
analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber,
you may purchase a copy of the report by calling (1) 212-438-9823 or sending
an e-mail to research_request@standardandpoors.com. Ratings information can
also be found on Standard & Poor's public Web site at
www.standardandpoors.com; under Credit Ratings in the left navigation bar,
select Find a Rating, then Credit Ratings Search. Members of the media may
request copies of these reports by contacting the media representative
provided.
(New York Ratings Team)