---------------------- Forwarded by Kay Mann/Corp/Enron on 06/20/2000 01:14 
PM ---------------------------


Robert E MacMillan
08/23/1999 04:30 PM
Sent by: Robert E MacMillan
To: Kay Mann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Joseph T Grajewski/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bill 
Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jerry D 
Martin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Keith 
Marlow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert E 
MacMillan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Re: Demar request for $2.7 mm to pay out the Skandinavian now  

Everyone,

When first we did the Demar deal, we received from Intership, the owner of 
the barge, a letter allowing us to take Demar's position in the contract to 
complete the purchase of the vessel should Demar fail to complete the 
purchase.  The reason for this is that Demar was providing its interest in 
the barge purchase contract as  collateral to the line of credit of $20MM.

What Gregorio Relloso is referring to in his letter is that we could now have 
a lien on the vessel to collateralize the line of credit.

I believe the savings to Demar in accelerating the payment is $700,000.  
Since Demar will no longer be making payments on the barge it's cash
flow should improve in September, October and November at which time I 
understand the work on EPC-4 should be complete.

For what it is worth I think we ought to approve this transaction providing, 
a) there is room in the credit line and none of our conditions are affected 
and b) Demar's projected cash flow to job completion is not negatively 
impacted.

Bob MacMillan