Nobody in my shop has seen any of this. I'm not sure what Rick is doing with
Skilling, and I am not in a position to respond to the outcome of their
meeting. Eric Gonzales needs this ship, or at least play the card with
either British Gas or BP/Amoco for fuel to supply the spanish plant. Eric is
frustrated as well, and nobody has done any economic or commercial study on
the exmar option. I'll phone Bergsieker and see what I can find out.
Thanks.

Jeff
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 08/28/2000
01:20 PM ---------------------------
Merritt Thomas 08/28/2000 12:24 PM

To: Jeffrey A Shankman/HOU/ECT@ECT
cc: Joe Gold/LON/ECT@ECT, Brad Hitch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,
Eric Gonzales/LON/ECT@ECT
Subject:

Jeff,

Two quick points:

1. We wanted to give you a heads-up in case you weren't aware - Rick
Bergsieker is planning to meet with Skilling sometime this week (believe
post-Wednesday) to talk about the exercise of the first Exmar option.

This option expires on September 8th, an extension from the original expiry
of 31 August.
Option 2 (for a third vessel - to expire 30 November) will expire along with
option 1, if option 1 is not exercised.
Option 1 is US$1,000/day more than the original vessel. Option 2 is
US$1,500/day more than the original vessel. (The original vessel is
US$51,850/day fixed + US$10,790 O&M escalating)
As discussed earlier, Bergsieker's group is offering the use of the Hoegh
Galleon (Mystic Lady) to Kogas as an incentive for them to sub-charter the
second Exmar vessel from us.
While we are not aware of the terms of the sub-charter agreement, we do
perceive the shipping constraint in the industry to be most acute in the next
3 years, and thus not the best use of the Hoegh Galleon.

We are under the impression that Bergsieker also plans to use this
opportunity to discuss "LNG Strategy and Oversight", specifically his group's
future role in it. Please see the attached presentation to this end.

2. We had a planning meeting with Eric today and are pushing ahead on an
initial business plan to be delivered at the end of the week. We expect to
cover the following:

Opportunities for Enron in this market
Value - where we can extract it
Assets - how best to utilise them
Resource planning
Goals

Please let us know if there is anything further you would like included at
this point, or if we can answer any questions regarding any of the above.

Thanks,
Merritt & Brad

+44-207-783-7063