Korea LNG opportunities

Darrell,

I attempted to call you a few minutes ago (late night your time - but there
was no voicemail). I didn't want to wait several more days before I contact
you. I'm out all weekend.

Eric shared with me some of your concerns about resources for a Korea LNG
opportunity. I certainly understand your view but wanted to share some of my
thoughts. Rick and/or Clay know the Asian LNG industry better than anyone
else in the company. They are very good and I have a lot of faith in them
and their ability to assess opportunities and develop projects. They are
lacking wholesale type of transaction experience that a few of the guys that
have recently come into the group have. That is why we have brought them
in. We have a very strong team and i like the mix a lot.

Eric is the person we chose to run the group for many reasons but it wasn't'
done as a lack of faith in Rick or his original team. The biggest
opportunities and the viewpoint we must take in this business is running it
like a wholesale unit and running it as a portfolio of transactions and
books. That certainly doesn't mean that 20 years of experience doesn't have
enormous value especially in the non-Atlantic markets. Rick is in the
process of coming back to Houston after the shut down of our middle east
projects and strategy. Rick is also in the process of assessing what exactly
he would like to do in the time of transition. My very sincere hope is that
he will stay in the LNG group and perform a very important role especially in
this type of development or deal making role. Especially in a big deal in
Japan, Korea or something in the Asian area. We will discuss this next week
when he comes to town.

I need Eric to be in Houston right now due to our Elba Island, Venezuela and
Bahamas immediate activity. He will certainly be engaged in everything but
he can not be focuses as much as you need in Korea or Joe needs in Japan.

Please give me a call next week and we can discuss this in more detail.

Thanks,
mike

PS - Frevert also likes this role for Rick. Also the Eric specific head role
has not been officially announced yet.