Guys, the project should be charged market based rates and ENA is not in the 
business of subsidizing international projects.  This is particularily the 
case if we are not going to hold a continued interest in the project.

However, if we can not reach a term O&M agreement please maintain the 
optionality in the project by managing the facility on a direct bill basis to 
APACHI until they find an alternative provider. Do not in any event abandon 
any assets at any time.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 06/12/2000 
01:50 PM ---------------------------


Raymond Bowen
06/12/2000 11:51 AM
To: David W Delainey/HOU/ECT@ECT
cc: Mark Dobler/NA/Enron@Enron 
Subject: Nigeria

A couple of points:

1) Dobler says that he has been in Nigeria for six months with no 
compensation and very poor communication.
2) The scope has changed from 3 barges to 9 barge.
3) His price quote is cost reimbursement plus $750,000/year for approximately 
thirteen years.  PV is between $5 and $6 million.
4) APACHI is having a severe case of sticker shock.
5) He insists this is market for a major international provider.

I need to understand your view as to whether we should price at market or 
does OEC have the mandate to be a "support" function for other Enron 
businesses (I assume the answer is NO)

Ray
---------------------- Forwarded by Raymond Bowen/HOU/ECT on 06/12/2000 11:40 
AM ---------------------------


James A Hughes@ENRON_DEVELOPMENT
06/11/2000 10:27 PM
To: David W Delainey@ECT, Raymond Bowen@ECT
cc: Rebecca McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Joe Sutton 
Subject: Nigeria

Dave:

It is apparent that we are not going to reach agreement on an O&M contract 
that will be acceptable to third parties.  Given our clear intention to exit 
this project as fast as possible and extract our value through a promote, 
this leaves me no choice but to seek other alternatives.  I would appreciate 
your providing me interim O&M services until I can identify a third party 
service provider.  If you carry out your threat to abandon the assets, this 
will result in invalidation of our insurance coverage.  I hope you understand 
that this is not in anyone's interest.  I am disappointed to discover that 
our first experience with the new structure of O&M services is so 
unsatisfactory.

Jim Hughes