Message-ID: <28929954.1075854443219.JavaMail.evans@thyme> Date: Mon, 12 Jun 2000 06:57:00 -0700 (PDT) From: david.delainey@enron.com To: raymond.bowen@enron.com, mark.dobler@enron.com Subject: Nigeria Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: David W Delainey X-To: Raymond Bowen, Mark Dobler X-cc: X-bcc: X-Folder: \David_Delainey_Dec2000\Notes Folders\All documents X-Origin: Delainey-D X-FileName: ddelain.nsf Guys, the project should be charged market based rates and ENA is not in the business of subsidizing international projects. This is particularily the case if we are not going to hold a continued interest in the project. However, if we can not reach a term O&M agreement please maintain the optionality in the project by managing the facility on a direct bill basis to APACHI until they find an alternative provider. Do not in any event abandon any assets at any time. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 06/12/2000 01:50 PM --------------------------- Raymond Bowen 06/12/2000 11:51 AM To: David W Delainey/HOU/ECT@ECT cc: Mark Dobler/NA/Enron@Enron Subject: Nigeria A couple of points: 1) Dobler says that he has been in Nigeria for six months with no compensation and very poor communication. 2) The scope has changed from 3 barges to 9 barge. 3) His price quote is cost reimbursement plus $750,000/year for approximately thirteen years. PV is between $5 and $6 million. 4) APACHI is having a severe case of sticker shock. 5) He insists this is market for a major international provider. I need to understand your view as to whether we should price at market or does OEC have the mandate to be a "support" function for other Enron businesses (I assume the answer is NO) Ray ---------------------- Forwarded by Raymond Bowen/HOU/ECT on 06/12/2000 11:40 AM --------------------------- James A Hughes@ENRON_DEVELOPMENT 06/11/2000 10:27 PM To: David W Delainey@ECT, Raymond Bowen@ECT cc: Rebecca McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe Sutton Subject: Nigeria Dave: It is apparent that we are not going to reach agreement on an O&M contract that will be acceptable to third parties. Given our clear intention to exit this project as fast as possible and extract our value through a promote, this leaves me no choice but to seek other alternatives. I would appreciate your providing me interim O&M services until I can identify a third party service provider. If you carry out your threat to abandon the assets, this will result in invalidation of our insurance coverage. I hope you understand that this is not in anyone's interest. I am disappointed to discover that our first experience with the new structure of O&M services is so unsatisfactory. Jim Hughes