Subject: BORCO
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 18 Jul 2001 06:16:38 -0700 (PDT)

I met with Jaime Vargas, President of BORCO and his staff including Matthew Missick, Maxwell Sweeting and Jan Olson on Monday morning regarding the proposed tank repair financing for storage payback. BORCO is highly motivated to do this deal and wants to supersize it ($10 million). Jaime's confidential comment to Jan "was we need to do this deal." Last Thursday, BORCO had their board meeting in Freeport and all of the PDVSA attendees approved the structure and concept of our deal. Jaime went on to say that PDVSA would look favorably on any term product purchase due to our new relationship with BORCO.   Obviously, the devil is in the monthly storage numbers and our willingness to commit, but we can get very cheap tankage relative to other Carib storage facilities. BORCO is going to revert with monthly fees for one and two turns on all of the following liquid fuels: crude, jet, diesel, gasoline and resid. They are also checking the premium to LIBOR they are willing to pay and if we can lower the interest rate premium they will in turn reduce the storage rate further. 

Please give this storage opportunity some thought and I will soon schedule a video conference to discuss.