Subject: Oman visit to DPC
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Sat, 10 Feb 2001 21:45:00 -0800 (PST)

Yesterday's meeting in Bombay among OLNG, DPC and Denton Hall (OLNG's lawyer) 
went very well.  DPC did a great job of describing the current situation in a 
balanced manner (yes, there are both positives and negatives).  OLNG was 
pleased with the information they received.

One concept that became apparent is that there may be two agendas within 
Oman----(a) OLNG's agenda, which is to cooperate to make the project a 
success, even if it involves some renegotiation and (b) Shell's agenda, which 
may be to force the project into default to create an opportunity for Shell 
to step in and take control of the only LNG terminal that will be built on 
the west coast of India in the foreseeable future.

The Omani government is contemplating a visit to Delhi to initiate 
government-to-government talks to help sort this out.  Dabhol is one of 
several projects that Oman had hoped would successfully build ties with 
India---and each of the projects has run into snags because India has not 
held up its end of the deal.

I had seperate talks with Wade/Jim about the forward path within Enron.  The 
three of us believe that DPC should consider either going short LNG or 
replacing at least a portion of its LNG contracts with an EGM supply 
contract, with EGM deciding what to do about coverage (i.e., short or long).

On a separate note, I met today with the head of Adgas in Abu Dhabi to 
explain the status of DPC.  They are happy that we are keeping them informed 
of potential problems, even though there has not been any default under their 
contract with DPC/MSEB.  At the end of the meeting, they volunteered their 
willingness to work with Enron to re-deploy the DPC cargoes if needed.  They 
recognize that pricing may have to change to accomplish this.

Rick