Re: Next Cargo

The usual payment terms of PDVSA are 30 days after bill of lading. We should
pay Enron, who is our seller, 30 days after bill of lading plus monthly
adjustments accordingly to market index movement. We are better protected by
paying as we did on the last cargo. We should follow Paul's recommendations
which are being discussed with Suzanne and her group.

Our cash flow forecast shows that we will be short by $800M depending on the
market index movements and after paying $397M of import tax, $156M of rent
and $164M of property tax.

Saludos

Paul Y'Barbo@ENRON
05/04/2001 04:10 PM
To: Greg Curran/CA/Enron@Enron
cc: Miguel Maltes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Javier
Chavarria/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Federico
Haeussler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Suzanne B Clapp/HOU/ECT@ECT,
Mariella Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: Next Cargo

If we worked out a price structure similar to the last cargo, we could
eliminate the price risk by paying the following for the LPG:

1400 MT at a Fixed Price (represents amount borrowed that went to April sales)
2900 MT based on May Mont Belvieu plus Premium 1
2800 MT based on June Mont Belvieu plus Premium 2 and
2900 MT based on July Mont Belvieu plus Premium 3

The Fixed Price for 1400 MT and the Premiums 1,2, and 3 are under discussion
with Suzanne. This structure matches the cost of product with ProCaribe's
sales revenue.

Question: How does ProCaribe get paid for the 15 days of product that goes
with the Progasco sale?

Paul

Greg Curran
05/04/2001 02:45 PM
Sent by: Greg Curran
To: Miguel Maltes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Javier Chavarria/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Greg
Curran/CA/Enron@Enron, Federico
Haeussler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Y'Barbo/NA/Enron@Enron,
Suzanne B Clapp/HOU/ECT@ECT, Mariella
Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: Next Cargo

Please explain how we will manage the price risk on this. Remeber that we
have to give 15 days worth of product with the sale of Progas. What are the
payment terms? How are you with cash?

Miguel Maltes@ENRON_DEVELOPMENT
05/04/2001 02:12 PM
To: Javier Chavarria/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Greg Curran/CA/Enron@Enron, Federico
Haeussler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Paul Y'Barbo/NA/Enron@Enron,
Suzanne B Clapp/HOU/ECT@ECT
Subject: Next Cargo

Our next cargo has a loading window in PDVSA on May 18, 2001, with an ETA in
ProCaribe on May 19 - 21, 2001. The cargo is for 10,000 Mts. (5.2MM gallons)
at MB + 7 three days around bill of lading. This means that the invoice will
be the average price of MB on the loading day, the day before and the day
after, excluding weekends and holidays, plus 7 cents a gallon.

The following are the monthly sales average per customer:

* Progasco 1,100,000 gallons
* San Juan Gas 210,000 gallons
* Centro Gas 140,000 gallons

Total borrowing return to EcoEl,ctrica 3,200 Mts or 1,667,200 gallons on
5/19/01.

After returning all the borrowing (5/19/01) we have a balance of 3,480,233
gallons. The following are the estimated sales and heater consumption per
month:

* May (12 days) 563,520 gallons (from May 20th through May 31st)
* June (30 days) 1,408,800 gallons
* July (31 days) 1,455,760 gallons

Inventory balance as of: 7/31/01 (52,153 gallons).

Next cargo arrival delivery window July 20 - 31, 2001.

Saludos