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Enron Mail |
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 11/05/99 09:37
AM --------------------------- Enron North America Corp. From: Patricia Cini 11/01/99 09:07 AM To: Susan Bailey/HOU/ECT@ECT cc: Sara Shackleton/HOU/ECT@ECT, Rodolfo Freyre@Enron Subject: TGS SWAP - Almost there... Susan- Please fax or e-mail the first revised draft of the ISDA to Rodolfo. I believe that TGS is ready to execute this document except for a pending question that they have concerning speculation. I am not sure what the issue is exactly for TGS in regards to speculation (see e-mails below), but I am calling Rodolfo for clarification. Also, do you know who could forward a sample copy of a confirmation to Rodolfo as well?? Thank you, Pat ---------------------- Forwarded by Patricia Cini/HOU/ECT on 11/01/99 09:02 AM --------------------------- Rodolfo Freyre @ ENRON_DEVELOPMENT 10/29/99 10:28 AM To: Patricia Cini@ECT cc: Subject: TGS SWAP - Almost there... Pat, Question: If you hedge something and then you do not produce (you do not back up your production with your swap), so basically you are speculating, how does that affect your financials?? TGS's lawyer will be back next Monday. I know you and Susan have worked on a new ISDA (w/o the CSA). Could you forward that to me so I send it to TGS and on Monday they have all the documents ready please? TGS asked me if we could send them a model of a "confirmation ticket" to see how it looks like. Also, I would like to see it as well, cause I never seen one. I guess that you will put price, index, settlements and volumes. Thanks, Rolo ---------------------- Forwarded by Rodolfo Freyre/ENRON_DEVELOPMENT on 10/29/99 11:37 AM --------------------------- Rodolfo Freyre 10/29/99 11:01 AM To: Don Black/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico Cerisoli/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeff Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brian Swinford/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe Kishkill/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: TGS SWAP - Almost there... I talked to Eduardo Pawluszek (TGS) this morning. So that everybody knows, last week we quoted propane, butane and gasoline. Citibank and Goldman Sachs have also quoted, but Enron came up with the best price. Eduardo told me he is ready to go, but he is still trying to waiting for Marketing to define volumes. What the auditors are saying is that if TGS hedges 2,500 tons during one month and they end up selling 0 tons, the hedge is now pure speculation. This is the main problem Eduardo is having. We need to communicate that the risk on price over the next 14 months is far more that the risk of a slight shortfall in delivery over the same time period. Which is the greater speculation?? On the ISDA, his lawyer will be arriving on Monday and we will keep on working on the document next week. Eduardo told me he is totally on board with this hedge but he is trying to convince Marketing to go for it (and it is giving him a hard time). We are plannig to pre-pay this swap which, considering current financial circumstances, would benefit TGS greatly. Do we need to go higher up in the organization?? Thanks, Jeff and Rolo
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