Organisational Announcement - Introducing Enron Global Markets

This raises some interesting questions around a global support model.

I had a concern that we are throwing a global metals business into a region=
al=20
support control process in London. Indeed, I am asking myself what support=
=20
model should exist for Asia - supposedly the key growth area for the new=20
Enron Global Markets business.

Would you have time to discuss/ brainstorm this - or do we think we have ti=
me=20
to prepare ( my worrry is that there are senior executives planning global=
=20
expansion which the support model ( Houston and London ) can not cope with =
)

Or am I paranoid

Regards

Mike
---------------------- Forwarded by Mike Jordan/LON/ECT on 02/08/2000 14:30=
=20
---------------------------
Office of the Chairman
From: Office of the Chairman@ENRON on 31/07/2000 18:07 CDT
To: All Enron Worldwide
cc: =20
Subject: Organisational Announcement - Introducing Enron Global Markets

As evidenced by an exceptionally strong performance in the second quarter,=
=20
Enron=01,s wholesale energy businesses in North America and Europe continue=
to=20
experience tremendous growth. The opportunities to continue to grow our=20
natural gas and power businesses have never been better and it is critical =
to=20
Enron=01,s future success that we remain focused on expanding these busines=
ses=20
and maintaining the strong momentum we have in these markets.

It is equally important that we continue to develop new businesses outside =
of=20
gas and electricity, which can make significant contributions to our earnin=
gs=20
growth. We have made significant progress in developing these businesses i=
n=20
North America, Europe, and most recently in our new Net Works business unit=
. =20
Included in these global businesses are our efforts in crude and products,=
=20
coal, emissions, insurance, currency, equity trading, interest rates, credi=
t=20
trading, paper and pulp, and metals.

While significant progress has been made in these efforts we need to=20
accelerate the growth of these new businesses while continuing to=20
aggressively expand our core gas and electricity businesses in North Americ=
a=20
and Europe. In order to accomplish these two objectives and to capitalize =
on=20
the increasingly global opportunities in these new businesses we are today=
=20
announcing the formation of a new business unit =01) Enron Global Markets. =
This=20
new business unit will focus on markets and commodities which are global in=
=20
scope, but outside our traditional gas and power markets. This new core=20
business unit will operate in parallel with and in close coordination with=
=20
the North American and European businesses.

Enron Global Markets will be headed by Mike McConnell, President and Chief=
=20
Executive Officer, and Jeff Shankman, Chief Operating Officer. They will=
=20
report to Mark Frevert who will be Chairman of Enron Global Markets. Mark,=
=20
Mike and Jeff will comprise the Office of the Chairman for Enron Global=20
Markets.

Included in this new business unit and reporting to the Office of the=20
Chairman will be the following businesses and their leaders:
- Global Crude and Products: John Nowlan
- Coal: George McClellan
- Currency, equities, interest rate and agricultural trading: Gary Hickers=
on
- Insurance and weather: Jere Overdyke

Enron=01,s metals business and Enron Credit.com will remain the responsibil=
ity=20
of Enron Europe. The Paper and Pulp business will continue to reside in Nor=
th=20
America.=20

With the departure of Mike McConnell from Enron Net Works, we are pleased t=
o=20
announce the following appointments in that business unit:
- Jeff McMahon: President and Chief Operating Officer
- Louise Kitchen: Chief Commercial Officer
- Philippe Bibi: Chief Technology Officer

Jeff, Louise and Philippe, along with Greg Whalley, will comprise the Offi=
ce=20
of the Chairman for Enron Net Works.

With Jeff Shankman=01,s departure from Enron North America=01,s natural gas=
=20
operation, all of Jeff=01,s direct reports will report to John Lavorato.

We are also pleased to announce the following changes to the Enron North=20
America Office of the Chairman. John Lavorato will join the ENA Office of=
=20
the Chairman as Chief Operating Officer. Dave Delainey will assume the rol=
e=20
of President and Chief Executive Officer. Mark Frevert will retain his rol=
e=20
as Chairman of Enron North America in addition to his role as Chairman of=
=20
both Enron Global Markets and Enron Europe.

Please join us in congratulating everyone in their new assignments and in=
=20
supporting the new Enron Global Markets organisation.