Re: FW: Port Costs

Hi Paul. Thank you again for your support. I am going to revise and
check the info. with my notes and i will revert to you.

I am now 100% sure that we can complete this deal. Is unbelievable how
inefficient is the actual discharge operation in the three terminals in P.R.
Also, Empire Gas expressed that if they receive an incentive on top of
their actual economies they have no problem in using ProCaribe .
However, they do not want to depend on Enron for their supplies.

As agreed, once we complete the material for the next meeting
with PDVSA we will discuss it with you and Greg.

Regards,

William Andr?s

From: Paul YBarbo/ENRON@enronXgate on 06/01/2001 04:15 PM CDT
To: William Mauco/SA/Enron@Enron, Greg Curran/CA/Enron@Enron, Miguel Maltes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico Haeussler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Elio Tortolero/ENRON@enronXgate, Mariella Mahan/ENRON@enronXgate
cc:

Subject: FW: Port Costs

William,

Attached is a revised PDVSA freight cost comparison for delivery to Empire versus delivery to ProCaribe. The analysis incorporates the data provided by Miguel Maltes that is shown below. This new analysis indicates that port costs are lower than previously assumed but vessel costs are higher. The net impact is virtually NO CHANGE. Please call me if you have any questions.

Paul

-----Original Message-----
From: Maltes, Miguel
Sent: Friday, June 01, 2001 10:39 AM
To: Y'Barbo, Paul
Subject: Port Costs

Paul,

The information that follows was provided by Luis Ayala Col?n Sucrs., Inc, the PDVSA shipping agency in Puerto Rico. These are actual port costs using the LPG/C Nelly Maersk which is the vessel servicing Empire Gas Company this year.

The following are the port costs estimates (quite close):

1. Barrels discharge per trip at CORCO - 30,000 bbls., Tropigas - 24,000 bbls., Liquilux - 20,000 bbls., One trip is three ports and another trip is two ports per month.

2. Discharge rates were given to us on an hourly basis and the agents took the average time per docking: CORCO - 48 hours or 625 bbls/hr., Tropigas - 28 hours or 857 bbls/hr., Liquilux - 20 hours or 1,000 bbls/hr.,

3. Port costs at:

Tallaboa $18,000
CORCO $18,000
Tropigas $13,000
Liquilux $17,000

Liquilux port costs are per the Port of Ponce tariffs which are different from the Puerto Rico Ports Authority tariffs
which apply to Tallaboa, Guayanilla and San Juan. At San Juan (Tropigas) the tug boats cost less due to the fact
that all tug boats companies are docked within the San Juan bay.

4. Port costs are not included in the vessel costs.

5. Port costs includes dockage, wharfage, harbor pilots, tug boats, and harbor fees. ProCaribe charges the
dockage and warfage to the shipping agent. All these costs are charged by the shipping agent to the owner of the vessel, the owner of the vessel then charges the charter party.

6. Other costs: Crudita - $4/barrel., Customs - $610.00 (Custom entry service $125, Custom duty deposit $485).,
Laboratories - $135/test (3 - 5 per ship)., Inspectors - $0.1780 per long ton., Loss Control Agent - $0.35 per MT.,

7. Days steaming from Jose Venezuela to Puerto Rico and in between island ports:

Jose to Puerto Rico (Ponce, Guayanilla and Tallaboa) - 36 hours
San Juan to Jose - 46 hours
CORCO to Ponce - 2 hours
Ponce to San Juan - 14 hours
CORCO to San Juan - 14 hours

These timings are from dock to dock.

8. ProCaribe annual expenses:

Year 2000 2001 (1CE)
Payroll $554M $525M
O + M $1,447M $1,534M
Depreciation $475M $492M
Taxes other than income $211M $250M
Other expenses $160M $86M

I hope this figures can help you in your model. If you have any questions please call me.

Saludos