Brent (and Neve and Bill),

I want to be perfectly clear in understanding this trade, and where/who is 
managing the risks.

Jeff

 -----Original Message-----
From:  White, Bill  
Sent: Wednesday, June 06, 2001 6:53 PM
To: Murphy, Ted
Cc: Shankman, Jeffrey A.
Subject: FW: New GFU oil volumes

Ted, looks like the deal may/will be hedged on Thursday.  They indicate that 
part of the oil may be offset with an existing accrual position (can't 
remember whether this magic was with train 1 or 2).  Two questions:  1) is 
this being signed off on by accounting, and 2) I would like to make sure that 
the offset position is being "put to bed", ie that we are not going to find 
ourselves trading a long-term piece of crude against the UK gas group at some 
point in the future.

Thanks for the help in advance.

 -----Original Message-----
From:  Ferguson, Matthew  
Sent: 06 June 2001 13:22
To: White, Bill; Clarke, Niamh
Cc: O'Brien, Tony; Peter, Stewart; Murray, Anita; Foster, Maria
Subject: FW: New oil volumes

Bill

Well, we are almost there, Statoil finally agreed our price today.  Also, it 
looks like the oil volumes that we need to hedge will not be as large as 
anticipated due to an existing long accrual position at the Teesside gas 
plant.  We will get the final amount that Transaction Support will let us 
apply to the Teesside position tomorrow morning and probably hedge the rest 
of it.  The anticipation is that we will need to purchase between 30% and 50% 
from you all.  

Attached are the volumes for both scenarios (30% and 50%).  If you can send 
over mid and offer prices for the two volumes, we will get a final number 
from TS and let you know how much we need to hedge in the morning.

Thanks
Matt   

 -----Original Message-----
From:  Murray, Anita  
Sent: 06 June 2001 19:07
To: Ferguson, Matthew
Subject: New oil volumes

Matt,

Please find attached a spreadsheet approximating the oil volumes based on the 
current forward USD/GBP FX rate & either a 33% or 50% hedge based on either 
of the two Train 1 scenarios.

Regards

Anita