FYI,  This is the offending email.  I received a call while I was doing the 
home inspection from Andrea.  She was very upset.  Mike promised to speak 
forceably to John and supposedly has done so but I wanted Mike to know that I 
wanted him to get inbetween John and Andrea.  John can be very difficult to 
deal with and Mike knows this.  I think Mike apprecaites the role Andrea 
plays and I hope he can do more to get a few of the business guys under 
control.
---------------------- Forwarded by Brent Hendry/ENRON_DEVELOPMENT on 
02/06/2000 05:42 PM ---------------------------


John J Shoobridge
02/06/2000 03:40 PM
To: Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Guillermo Canovas/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Brent 
Hendry/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Andrea 
Calo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rodolfo 
Freyre/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cristian 
Folgar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Don Black/SA/Enron@Enron, Jeff 
Kabel/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Julian 
Poole/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dan 
Feather/Enron_Development@ENRON_DEVELOPMENT, Pablo 
Acevedo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 
Subject: Sicamar

Last night I had a long chat on the phone with Sicamar's president Mr. 
Domingo Cabado over the possibilty of them not purchasing gas from us at the 
Citygate as it was agreed with them on April 27.
These are some of the reasons we discussed over the phone:

At a meeting of "metal?rgicos" held this week he was informed  that Litoral 
Gas was 30 % owned by the Techint group. He was also informed of how 
"worried" Techint was about Open Access and it's consequences on related 
companies of the "italian" group (TGN, Litoral, Siderca, Siderar,etc) 
Litoral Gas had enough time to investigate what kind of relationship linked 
Sicamar's business to Techint's related companies.
Our lack of fast response to send out a document that was commercially agreed 
on April 27 and only needed minor changes to the original document that was 
sent out back to the customer four weeks later. This gave Litoral Gas enough 
time to approach Techint's headquarters and threaten Sicamar that their 
commercial relationship with Techint's related companies could be damaged.

Mr. Cabado told me that Sicamar was ready to go with us a month ago but these 
new issues made him doubt on what was verbally agreed with us.

I personally believe that probably Sicamar wouldn%t have closed a deal with 
us anyway but a certain doubt remains in my mind of what would have happened 
if we had delivered in time our Offer.
Prebon (Sicamar's consultant) also mentioned this to me and had warned me 
(during May) about the time we were giving Litoral Gas to react. I coincided 
but also told him that Techint's pressure on Sicamar was also a main factor 
of their negative decission to our offer.

I believe communication needs to be improved among the commercial team and 
the legal department. We have had in the past these problems and at some 
stage were resolved with a couple of meetings we had with Brent and Andrea. 
For some reason we are falling into the trap again of "lack of communication" 
and I would suggest to follow the course we started some months ago that 
turned to be very benefitial for the office as a whole.

I openly invite those who are concerned over this issue to discuss it as soon 
as we can. 

The good thing about my conversation with Mr. Cabado was that he would be 
interested in what can Enron offer to him on an Energy Services approach. I 
told him that we should discuss this in more depth in the near future.