Subject: Re: Dolphin Q&As
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Wed, 14 Feb 2001 21:45:00 -0800 (PST)

I have added another question at the end.

John Ambler
02/15/2001 01:03 AM
To: Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Daniel R 
Rogers/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Mike McConnell/HOU/ECT@ECT, Jeffrey A Shankman@ECT, Mac 
McClelland/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Maurizio La 
Noce/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Dolphin Q&As  

Rick,

Consistent with our discussions and the information you provided, I intend to 
use the following additional statements if needed to respond to media 
inquiries.  Your comments and approval would be appreciated.

Q.  Can you confirm that the contract will be signed in March?

A.  We expect that a "Heads of Agreement" between the governments of Qatar 
and the UAE will be signed.  This is a very significant agreement outlining 
commercial terms for the development of Qatari gas for export to the UAE.  
With this government-to-government protocol, the project developers (UAE 
Offsets Group, TotalFinaElf and Enron) can now proceed with negotiations over 
other key elements such as the Production Sharing Agreement, GSA and 
transmission access agreements.   It will be a number of months before these 
other agreements can be completed and sufficient detail is available for the 
Dolphin project developers to agree to and secure necessary approvals.

Q.  What are the details of the agreement with Qatar?

A.  The UAE Offsets Group as majority owner is the appropriate authority for 
comment on such an agreement.  In addition, as the project progresses, 
TotalFinaElf is expected to play a major role in the upstream development.  
Enron expects to focus its attention on gas marketing, pipeline development, 
project structuring/financing and risk management.

Q.  What will be Enron's financial commitment to the project?  

A.  It would not be appropriate to discuss specific cost figures at this 
stage.  However, I can say that we expect to project finance most of Enron 
and the other company's participation in Dolphin.  In addition, the Dolphin 
Strategic Partners have structured the project to provide for multiple 
investors, who will be offered the opportunity to join the venture after key 
project documents are executed.  

Q.  Offsets has often described Dolphin as a $10 billion project.  Is this 
true?

A.  It would not be appropriate to discuss project costs at this time.  
However, it is clear that the cost for the initial phases of the project 
(production and delivery of 2 to 3 bcfd of gas from Qatar to the UAE) is 
nowhere near this amount.  The $10 billion number assumes later expansions of 
the project to supply Oman, Pakistan and possibly India, plus an investment 
multiplier effect to reflect the potential new downstream facilities that end 
users will be able to build once Dolphin gas is available to fuel such new 
facilities