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Enron Mail |
There was a flurry of activity in March, 1997 involving Petron but it was on
the physical side and we never made it to the swap issues. Again in April, 1998, Manuel and John Enerson began looking into the issue of gaming statutes in an effort to attack legislation in the Philippines. No further legal work was ever attempted. Hope this helps. Regards. SS Anita Fam 07/18/99 08:46 PM To: Alan B Aronowitz/HOU/ECT@ECT cc: Janice Moore/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Mark - ECT Legal Taylor/HOU/ECT@ECT, Cynthia L Schneider/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Wang Moi Eng/SIN/ECT, Manuel P Gallego@ENRON_DEVELOPMENT Subject: Re: Update on Petron Hedging Program All - I'll be happy to do the legal due dliligence and ISDA documentation from here. Bill/Cynthia: Please let me know who in Credit will be handling this so that I can coordinate with them when the need arises. Sara: When Janice mentioned the legal due diligence with regard to commodity derivatives in the Philippines, did she mean the legal survey done by Allen & Overy? If so , I've got copies of all that and can take it from here. If that isn't the case and you've done more ISDA work in the Phillipines since then, I'd be forever grateful if you could send over whatever copies of the stuff which you have for me to suss out the situation there. Mark T. /Janice: Is there any particular law firm whom we should work with this time round? Thanks, all. Rgds, Anita Alan B Aronowitz 07/16/99 10:41 PM To: Janice Moore/HOU/ECT@ECT cc: Anita Fam/SIN/ECT@ECT, William S Bradford/HOU/ECT@ECT, Mark - ECT Legal Taylor/HOU/ECT@ECT, Cynthia L Schneider/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT Subject: Re: Update on Petron Hedging Program Anita/Sara: I would suggest that Anita handle while coordinating with Sara on the background of the previous work product. Alan Janice Moore 07/13/99 10:19 AM To: Anita Fam/SIN/ECT@ECT, William S Bradford/HOU/ECT@ECT cc: Mark - ECT Legal Taylor/HOU/ECT@ECT, Alan B Aronowitz/HOU/ECT@ECT, Cynthia L Schneider/HOU/ECT@ECT Subject: Re: Update on Petron Hedging Program Well, it looks like we might have a shot at an ISDA w/ a PHilippines company. One issue that discussed w/ Manuel but he does not mention in his note is that we would probably require an enforceability opinion from Petron (a compnay jointly owned by the PHilippines govt and Saudi Aramco). I'm not sure which credit dept. would handle this deal, but Cynthia Schnedier has some familiarity w/ Petron. I'll leave it to Mark, Alan and Anita to determine whether Anita will handle the ISDA or whether it will be someone from Houston (Sara S. did the original legal due diligence on the enforceability of commodities derivatives contracts in the PHilippines). ---------------------- Forwarded by Janice Moore/HOU/ECT on 13.07.99 10:15 --------------------------- Wang Moi Eng 12.07.99 22:31 To: "Manuel Gallego/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL @ ENRON cc: John Chismar/SIN/ECT, Hans Wong/SIN/ECT@ECT, Mike Brown@ENRON, Janice Moore/HOU/ECT@ECT, Angel M Esguerra/SIN/ECT@ECT, David A Terlip AT ENRON_DEVELOPMENT@CCMAIL@ENRON, Victor Santos AT ENRON_DEVELOPMENT@CCMAIL@ENRON, Bruce Lundstrom AT ENRON_DEVELOPMENT@CCMAIL@ENRON, Heather J Mitchell AT ENRON_DEVELOPMENT@CCMAIL@ENRON, Alberto J Carreno AT ENRON_DEVELOPMENT@CCMAIL@ENRON Subject: Re: Update on Petron Hedging Program Manuel, Thanks for the update and we look forward to meet Petron traders/risk management team during our next visit to Manila, probably during our first cargo of gasoil to FGH, currently planned for end August / early September. Kindly let us know on new developments. For your information, John is away on home leave and will be back in office only after mid - August. Best regards, Eng From: "Manuel Gallego/ENRON_DEVELOPMENT" AT ENRON_DEVELOPMENT@CCMAIL on 13/07/99 10:53 CDT To: John Chismar@ECT, Hans Wong@ECT, Wang Moi Eng@ECT, Mike Brown, Janice Moore@ECT, Angel M Esguerra@ECT, David A Terlip AT ENRON_DEVELOPMENT@CCMAIL, Victor Santos AT ENRON_DEVELOPMENT@CCMAIL, Bruce Lundstrom AT ENRON_DEVELOPMENT@CCMAIL, Heather J Mitchell AT ENRON_DEVELOPMENT@CCMAIL, Alberto J Carreno AT ENRON_DEVELOPMENT@CCMAIL cc: Subject: Update on Petron Hedging Program Dear John, Yayette Ventigan of Petron informed me yesterday that the energy derivatives course conducted by Paradigm in Manila from July 7 to 10 was well-received. I sensed that the course was not deemed easy by the Petron participants. Further, Yayette indicated that they could have easily used up more time for the same amount of material. Given the Paradigm course (and the Citibank course which Yayette attended in Australia), Yayette indicated that the Petron Board will most likely give the marching orders to Petron management on July 27 to (1) develop an initial, basic and conservative hedging program for Petron?s fuel oil and gasoil supplied to the National Power Corporation and (2) go out to the market (most likely through a bid process) and execute a financial risk management contract (ISDA). Yayette indicated that Petron looks forward to the working meeting with Enron?s Singapore traders. I indicated to Yayette that end of August to early September would probably be convenient for us. Yayette could not yet determine an appropriate time for Petron. With respect to legal expectations, Petron appears to be at ease with the following: ? In general, the concept of disassociating the financial risk management contract from the Philippines with the exception of Petron Corporation (a Philippine corporation) being a party to the contract. ? Petron executing a financial risk management contract with an offshore counter-party like Citibank Australia or ECT Singapore. ? Petron physically executing the contract outside the Philippines. ? The contract to be governed by the laws of the State of New York. I did point out to Yayette the need for offshore collateral in the form of a Letter of Credit, which is consistent with the risk of non-enforcement for collateral in the Philippines. Yayette indicated that she would raise this issue in her discussions with Petron treasury. More later as I receive more feedback from Petron. Best regards, Manuel
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