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Enron Mail |
FYI
Vince ---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 08/17/2000 10:50 AM --------------------------- Douglas S Parsons@ENRON_DEVELOPMENT 08/15/2000 08:05 AM To: Vince J Kaminski@ECT cc: Subject: Re: Cairn Gas Purchase Bid Vince, I'm following up on our conversation late last week and I'm interested to see what your group can advise, per Doug Leach's recommendation. As you can see he is raising a major red flag in regards to our non-binding offer to Cairn. Since, it was late the other night I didn't touch base with Sandeep Kohli, but Bobby and I are probably the most knowledgeable in regards to the Indian gas market. Please let me know what information you may need from us to provide some guidance. Regards, Doug ---------------------- Forwarded by Douglas S Parsons/ENRON_DEVELOPMENT on 08/15/2000 07:51 AM --------------------------- Bobby Farris 08/14/2000 10:19 PM To: Douglas S Parsons/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Re: Cairn Gas Purchase Bid There is no harm in seeing what Kaminski's group will advise. Do you have any problem in contacting them ? BOBBY Doug Leach@ECT 08/14/2000 07:45 AM To: Douglas S Parsons/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Marc De La Roche/HOU/ECT@ECT, Bobby Farris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: Cairn Gas Purchase Bid I strongly disagree with the pricing and structure of your non-binding offer to Cairn. This reminds me of the debacle in Brazil. You should have contacted Vince Kaminski's research group as we talked about before an offer was made. This is a bad deal. Douglas S Parsons@ENRON_DEVELOPMENT 08/12/2000 01:51 AM To: Doug Leach@ECT, Marc De La Roche@ECT cc: Subject: Cairn Gas Purchase Bid Doug & Marc, FYI, please let me know if you think we're totally off base. I appreciate your help. Regards, Doug ---------------------- Forwarded by Douglas S Parsons/ENRON_DEVELOPMENT on 08/12/2000 01:48 AM --------------------------- Douglas S Parsons 08/11/2000 06:24 AM To: Bobby Farris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: F B Virani/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ujjwal Dey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Nilesh Vaishnav/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Cairn Gas Purchase Bid Bobby, After meeting with Cairn today in Delhi, my perception is that our offer was received well. They were more open and relaxed then they were on Wed. morning and made several encouraging comments about our price range, (once we talked through the price movements), and the seriousness of our gas related activities on the West Coast of India, in light of the IOC agreement. I think the overall package is attractive to them and no serious objections were raised. We did talk to some extent about the guarantees, but we didn't get too far and they're willing to accept at this point that what's acceptable to the LNG suppliers, should be suitable for their needs. However, they would like to understand the corporate structure and assets of Enron Energy Marketing a little better and I told them I would get back to them on that point. David and Ajay were up in Hazira yesterday looking at some property for their gas treatment facility, which apparently is across the road from pipeline access. While there they went and looked at Shell's proposed LNG site after walking the last 1 km, inaccessible to their 4wd vehicle and not surprisingly found a beach. In summary, here is what we offered on a non-binding basis: Six year production plateau 85% TOP $3.67/MMBtu Net, at a base of $18/bbl Brent, with point of sale at the tail-end of the gas processing plant Floor & Cap of $15.50 - $27.00/bbl Price movement: +/- $1.00/ bbl from the $18/bbl base price (on a 3 mo. rolling average) equals +/- $0.145/MMBtu fixed on a quarterly basis Guarantees: Same protection we're providing the LNG suppliers under the Trust Retention Account I appreciate everyone's help in submitting this offer. Thanks, Doug
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