Message-ID: <26377684.1075843918933.JavaMail.evans@thyme> Date: Mon, 2 Oct 2000 06:54:00 -0700 (PDT) From: mike.mcconnell@enron.com To: rick.bergsieker@enron.com Subject: RE: Investment Opportunity/Dabhol Power Company Cc: jeffrey.shankman@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: jeffrey.shankman@enron.com X-From: Mike McConnell X-To: Rick Bergsieker X-cc: Jeffrey A Shankman X-bcc: X-Folder: \Mark_McConnell_June2001\Notes Folders\All documents X-Origin: MCCONNELL-M X-FileName: mmcconn.nsf Rick, Obviously we want to control access to the LNG terminal. I don't really understand why it is so difficult if we go to 50%, its a negotiation item. Or at least a cheap retention option not to be given away for free. After your follow-up meetings, please let me know if we need to get more involved. m Rick Bergsieker@ENRON_DEVELOPMENT 09/30/2000 12:07 PM To: Mike McConnell/HOU/ECT@ECT, Jeffrey A Shankman@ECT cc: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bill Gathmann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: RE: Investment Opportunity/Dabhol Power Company Mike/Jeff: per your instructions, we have taken a look at Enrion India's plans regarding selldown of DPC/.Metgas to determine what impact this could have on our LNG business. The second paragraph of Wade's note below sums up the current situation. Bottom line, if Metgas is sold down by Enron India from 100% to 50%, we would lose the right to control unilaterally decisions related to the use of the Dabhol LNG terminal. I don't know how much someone may be willing to pay for Metgas, but I suspect that at this time it is a relatively small number when compared to the strategic value of controlling this terminal We will discuss next week when we are in India. Please advise if youhave any thoughts or suggestions Rick ---------------------- Forwarded by Rick Bergsieker/ENRON_DEVELOPMENT on 09/30/2000 11:59 AM --------------------------- enron india From: Wade Cline 09/30/2000 04:25 AM To: Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, A G Gelotti/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Bill Gathmann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Clay Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: RE: Investment Opportunity/Dabhol Power Company Rick, we can discuss this more at length in Mumbai this coming week. Metgas is the only company that has any access to DPC's terminal. As you know, DPC is owned today by Enron (65), MSEB (15), GE (10) and Bechtel (10). At year end, Enron's 65 will be split to Enron (50) and new investor (15). Any changes to the terminal or the TARA have to be approved by DPC, which is heavily influenced, but not controlled, by Enron. The real asset that Enron has today is the TARA, and Enron has this through Metgas. Under the TARA, Metgas has right to have DPC regassify any gas that Metgas delivers to DPC. In addition, Metgas has rights to increase size of terminal at its cost. So whoever owns and controls Metgas is who has the real value here. Today, Metgas is 100% owned and controlled by Enron, so Enron has control. But in any sale of Metgas, Enron's control will be lessened. Under current plans to avoid debt consolidation, we will reduce Enron's equity position to 50% or less, which means we are at best sharing control with someone else, or maybe a group of someone else's. If Enron is uncomfortable with this because it views access to Metgas terminal as part of larger LNG role, we should discuss ASAP. AG -- please allow time on Wednesday's agenda to discuss these issues with Rick and Clay. Wade Rick Bergsieker 09/30/2000 01:45 AM To: Bill Gathmann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Clay Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: RE: Investment Opportunity/Dabhol Power Company Clay: I suggest taht you meet with David Forbes asap. Bill/Wade: I would like to understand how DPC/Metgas selldown will impact Enron's ability to control acces to the DPC LNG terminal. If an LNG competitor buys in (e.g., Total or British Gas or Shell) could they block our acces to the terminal? Bill Gathmann 09/28/2000 01:15 PM To: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Clay Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: RE: Investment Opportunity/Dabhol Power Company Clay, As you know, we are selling portions of both Dabhol and Metgas. For fuel supply, they can supply Nahptha to Dabhol and LNG to Metgas. They will have BOD positions pro rata with their ownership. Finally, in the case of Dabhol, there are significant minority shareholder protections given the way the the various voting procedures are designed. I am not as familiar with the Metgas voting procedures, but there is certainly the opportunity to negotiated something there since it is still in development. Also, there should be attractive commercial returns with each project. I feel that these opportunities certainly meets their investment criteria. If they are interested, we need to get them up to speed quickly. Call me or let me know how you want to proceed on this. Bill enron india From: Wade Cline 09/28/2000 12:21 PM To: Clay Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Bill Gathmann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: RE: Investment Opportunity/Dabhol Power Company Bill, please get back with Clay on this and let him know if you think there is a fit. It sounds like DPC meets their requirements, but as Bill is leading our selldown efforts, I'll let him respond. Clay Harris 09/29/2000 02:50 AM To: Wade Cline/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bill Gathmann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Rick Bergsieker/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: RE: Investment Opportunity/Dabhol Power Company Based on the email below is IPIC worth pursuing??? Please advise. Clay ---------------------- Forwarded by Clay Harris/ENRON_DEVELOPMENT on 09/28/2000 04:19 PM --------------------------- David Forbes on 09/28/2000 01:34:40 AM To: Clay.Harris@enron.com cc: Abdulkareem Thabet , Khadem Al Qubeisi , Wendy Harrison Subject: RE: Investment Opportunity/Dabhol Power Company Clay, Thanks for the information on DPC. IPIC's current focus on India is to identify investments with related crude, naphtha or gas supply needs which could be filled by Adnoc or Adgas, with priority currently assigned to Adnoc's naphtha. IPIC would also be looking for a commercial return, BOD participation & strong minority shareholder protection. Does the DPC opportunity fit this profile? If so IPIC could certainly look at it... Best Regards Dave Forbes -----Original Message----- From: erick angeles [mailto:ipicuae@emirates.net.ae] Sent: Thursday, September 28, 2000 9:14 AM To: forbesd@ipic.co.ae Subject: FW: Investment Opportunity/Dabhol Power Company >--- Original Message --- >From: Clay.Harris@enron.com >To: ipicuae@emirates.net.ae >Date: 9/25/00 4:56:45 PM > >D. J. Forbes, > >I wanted to advise you that DPC is now actively seeking investors for an >approximately 16% interest in the Company. If IPIC is still interested >please give me a call at 050/457-2349 or 04/3085747. > >Clay Harris >Enron Middle East > > ---------------- Sent from a WebBox - http://www.webbox.com FREE Web based Email, Files, Bookmarks, Calendar, People and Great Ways to Share them with Others! E-mail Disclaimer This e-mail message is confidential and is intended only for the individual or entity named above and contains information that is or may be confidential, non-public or legally privileged. 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