1. (3 points) What are the main political, financing and operational risks facing Petrozuata? How does the way the deal is structured attempt to mitigate these risks?

2. (3 points) Refer to the Excel file Petrozuata on BB. If the projects sponsors project that oil prices will decrease 1% a year for the next five years, should they proceed with the project? Why or why not? Are they likely to get an investment grade credit rating? What if oil price growth was projected to be +3%?