fyi
---------------------- Forwarded by Doug Leach/HOU/ECT on 01/25/2001 09:40 AM 
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	From:  Doug Leach                           01/25/2001 09:36 AM
	

To: Don Schroeder/HOU/ECT@ECT, Spencer Vosko/HOU/ECT@ECT, Robert 
Fuller/HOU/ECT@ECT, Patrick Danaher/NA/Enron@Enron
cc: John L Nowlan/HOU/ECT@ECT, Peggy Rathmell/HOU/ECT@ECT, Bill 
White/NA/Enron@Enron 
Subject: Offshore crude

Tom Byargeon, Kevin Miller and Ken Loch in ENA are working with producers in 
the US involved in deep water offshore Louisiana/Texas oil and gas drilling 
projects. This financing activity was primarily started to help ENA secure 
long term well head and pipeline natural gas supplies to supplement the gas 
trading desk activities. Just like what happened in Enron's initial VPP 
program they are find more interest in oil drilling projects rather than 
natural gas projects. 

They are currently working on a bid (due 1/31) for the Medusa project which 
involves Murphy (operator), Agip and Callon in Mississippi Canyon Blocks #538 
and #582. The initial reservoir reports estimate reserves of 80-120 million 
barrels of sour crude and they estimate initial production to be 40,000 bpd 
starting in 1Q 2003. Quality is estimated to be a Mars type crude with 25-27 
API Gravity and 1.5-2.0% sulfur. Plans are to build a private pipeline to 
Equilon's West Delta #143 platform and then bring the oil onshore. Peggy is 
finding out where WD #143 pumps to onshore.

Tom's group would like to know if we have any interesting in buying the crude 
on either a fixed or floating basis. The floating could be tied to a Platt's 
index or the NYMEX. It is far too early to expect Murphy to enter into a 
physical or financial contract, but Tom hopes to get us first and/or last 
look from Murphy when the time is right. Another alternative is to give 
Murphy barrels at their 95,000 bpd Meraux, Louisiana refinery in exchange for 
the new production barrels. 

Could someone in your group please give me a notional non binding basis 
differential for this quality of crude for Cal 2003?