BRAZIL: CONCLUSION OF MAE RULES
Gazeta Mercantil, 01 Mar 2000, p. a-14:-
 On February 29th 2000, last outstanding matters on the rules for beginning 
of operations of the Brazilian Electricity Wholesale Market (MAE) were 
decided and approved.
Thus, first reference date for the MAE to begin operating was set for 
September 1st 2000.
Rules had been defined into seven groups: prices formation, measurement 
standardisation, thermal generation, energy reallocation, international 
interchange, payment of the system's service burdens and penalties.
These first six groups will be produced within the next 10 days for approval 
by the Brazilian National Regulatory Agency for Electricity (Aneel), while 
the penalties group still remains an outstanding matter to be defined and 
approved before September 1st 2000.
One outstanding matter that was hindering the definition of MAE's beginning 
date was conflicts between electricity distribution and generation companies 
on the way to negotiate the so-called exceding energy, which is the 
difference between energy initially provided in supply contracts and that 
actually consumed on the market.
The answer is the creation of energy "credits" whenever consumption is higher 
than hired contract. Exceding energy will be converted into credits that can 
be both exercised afterwards or traded on the market. Payment of distribution 
to generation companies have been maintained as provided in contracts.
This credit system will be in effect from September 1st 2000 to December 31st 
2002. After that, remaining credits not used will be liquidated through the 
optimisation tariffs that currently is about R$ 3/MWh.


ARGENTINA: OIL PRICE AND ROYALTIES
Los Andes (Argentina), 08 Mar 2000, p. on line:-
 The US$ 34 per barrel price reached by crude oil in overseas market may have 
a positive impact over the incomes received by the province of Mendoza, 
Argentina, in concept of royalties, according to estimations made by this 
province's government. However, Gustavo Callejas, former Secretary of Fuels 
of Argentina, admitted such royalties should be increased, as provinces 
should debate with companies and the federal government the proceedings used 
to fix such incomes.


ARGENTINA: FRAUD MANOEUVRE DENOUNCED
La Nacion (Argentina), 04 Mar 2000, p. 2/1:-
 A new scandal involves the Argentine tax bureau AFIP. One of its officials 
and a fishing company which also trades gasoline, Kiball, are involved in a 
US$ 330mn fraud due to falsified accounts they presented during the terms 
1995, 1996 and 1997. Through a "ghost" firm, Kiball purchased fuels without 
paying the gasoline transfer tax (ITC) and falsified the payment 
certification the AFIP grants, and even adulterated the gasoline with a mix 
of different fuels.


ARGENTINA: WIND NOT SO FREE ANYMORE IN CHUBUT
Clarin, 08 Mar 2000, p.20:-
 Legislators from the Argentine province of Chubut are drafting a bill that 
charge companies or entrepreneurs for using the wind for profit. Ecologists 
criticise the move and believe that the bill could scare off a US$ 50mn 
investment in a wind powered electricity plant that would create some 1000 
jobs for the province.


ARGENTINA: CRUDE OIL PRICES + REGULATION
El Cronista Comercial, 07 Mar 2000, p.2:-
 Argentine Senators are in the midst of drafting a new fuel bill that sends a 
clear message to oil companies which it threatens with the return of price 
controls. Two other Senators have initiated an action before the country's 
Ombudsman claiming that oil companies are abusing their dominant position on 
the Argentine market.


ARGENTINA: GAS DISTRIBUTORS PROTEST COMPETITION
La Nacion (Argentina), 09 Mar 2000, p. 2/1:-
 The Argentine gas distributors association Adigas has complained that plans 
by regulatory body Enargas to allow large consumers direct access to the 
wholesale gas market through brokers will favour new actors in the market and 
reduce their income. Adigas claimed that its members have respected the right 
to access to gas transport and distribution capacity, and that the entry of 
new players under more favourable conditions would make it impossible for 
them to compete on an equal footing.


ARGENTINA: DEBATE OVER ACCESS TO GAS MARKET
El Cronista Comercial, 07 Mar 2000, p.3:-
 The Argentine National Gas Regulator (Enargas) will hold public hearings on 
7 March to determine whether to change or modify the current natural gas 
commercialising and distribution system. Natural gas retailers want to be 
able to compete with gas distributors, but are unable to because of the 
current fixed rate system. Distributors believe that changing the current 
system would violate concession agreements and these companies are 
threatening to international measures to enforce the agreements. Distributors 
also say that retailer have made no infrastructure investment in Argentina 
and a change in the regulation scheme would create a disincentive for 
investment in Argentina. Enargas is also considering the possibility of 
allowing more small and medium sized business access to the wholesale natural 
gas market.


ARGENTINA: GOV'T WANTS TO LOWER GAS RATES
Buenos Aires Economico, 06 Mar 2000, p.2:-
 After negotiating a slight drop in telephone and electricity rates, the 
Argentine government would like to see gas prices follow suit and will 
conduct public hearings on the matter on 6 March, much to the dislike of 
Argentine gas distributors. Gas companies state that contrary to the electric 
and telephone service sectors, natural gas distribution has a very low profit 
margin and there is nowhere to cut. The government initiative aims at 
reducing production costs for manufacturers and large natural gas consumers.


ARGENTINA: GAS SECTOR DE-REGULATION DEBATED
Clarin, 04 Mar 2000, p. 22:-
 Argentine gas distribution firms resist the government's decision of 
de-regulating the local gas sector, as they do not want to share their 
corporate clients with newcomers and be forced to reduce prices. The 
Argentine gas sector bureau ENARGAS is encouraging a debate to implement 
de-regulation measures to authorise companies to be supplied gas directly 
from producers, without the intervention of gas distribution firms. Big firms 
demand 10,000 cubic metres of gas daily in Argentina, and all such demand is 
channelled through gas distribution companies. The government wants to reduce 
such amount to 5,000 cubic metres allowing several firms to purchase gas 
directly from producers, possibly implying a 10%-25% reduction in terms of 
prices. In terms of daily distribution of gas, MetroGas leads the sector with 
15.2mn cubic metres, followed by Camuzzi Gas Pampeana (10.9mn cubic metres), 
Camuzzi Gas del Sur (9.2mn), Litoral Gas (8.6mn), Gas Natural BAN (8.3mn), 
Distribuidora de Gas Cuyana (5.1mn), Distribuidora de Ga
s del Centro (4.6mn) and Gasnor (4.5mn).


ARGENTINA: GAS MARKET RULING TO COME
El Cronista Comercial, 08 Mar 2000, p. 8:-
 The Argentine natural gas regulatory board, Enargas, now has 60 days to make 
a ruling as to whether large consumers of gas have free access to natural gas 
distribution networks thereby breaking up the supply chain into production, 
transport and distribution. Industry, gas sellers, and consumer rights groups 
have battled head on with Argentina's gas distributors (Gas Natural BAN, 
Metrogas, and Camuzzi, among others) to present their case to Enargas.  


ARGENTINA: ENRON FIGHTS GAS COMPANIES
El Cronista Comercial, 06 Mar 2000, p.7:-
 Public hearings will be held on 7 March in the offices of the Argentine 
National Gas Regulator (Enargas) to determine whether the Argentine natural 
gas market needs more competition and incentives in order to reduce natural 
gas costs for the private sector. US gas company Enron which controls 35% of 
Argentina's Transportadora Gas del Sur (TGS) has thrown the first stone in 
the fight between gas distributors and gas brokers that want to enter the 
market. In fact, Enron believes that the market needs more competitors to 
lower rates and offer the possibility of receiving integrated services that 
would include the financing of production equipment and other services. The 
Argentine government has submitted draft regulation that would allow more 
companies to negotiate lower rates with wholesalers and to change the current 
charging system. 


BRAZIL: ALLIANT TO ACQUIRE COMPANIES AGAIN
Gazeta Mercantil, 09 Mar 2000, p. c-6:-
 The US company Alliant changed its strategy for the Brazilian market, 
planning to continue with the acquisition of Brazilian electricity companies.
Alliant already acquired 45.6% of the voting capital of Energisa and plans to 
compete in the tenders for the privatisation of Cemar, Saelpa, Ceal and 
Cepisa with US$ 300mn in 5 years.

BRAZIL: ELECTRICITY COMPANIES' OUTSOURCING
Gazeta Mercantil, 03 Mar 2000, p. c-4:-
 Many Brazilian electricity distribution companies began to outsource 
networks and equipment maintenance services after their privatisation in 
order to reduce costs and increase quality and productivity. Businesses 
between US$ 400mn and US$ 500mn yearly may be generated with this outsourcing 
trend.
The company Elektro signed a contract in the beginning of 2000 by which the 
company Potencial (created by former employees) will render several services 
to Elektro, receiving R$ 2.5mn yearly during 4 years for that. Services 
include electric material selection, electric testing, meters recovery and 
control, voltage regulators recovery and equipment maintenance.
The company CPFL signed an agreement also in the beginning of 2000 by which 
the company Alstom will be responsible for the equipment maintenance, 
receiving approximately R$ 20mn during 4 years.
The company Bandeirante increased its expenses with services rendering from 
R$ 45mn in 1998 to R$ 62mn in 1999.
Eletropaulo is an exception, not outsourcing maintenance services. It 
transformed its maintenance area in a business unit which will become a 
subsidiary later rendering services to other companies too.


BRAZIL: US$ 1.3BN INVESTMENTS OF EDP
Gazeta Mercantil, 03 Mar 2000, p. c-4:-
 The Portuguese group EDP (Electricidade de Portugal) plans to invest US$ 
1.3bn by the end of 2003, focusing on the construction of thermal power 
stations.
The company will invest in 9 thermal power stations projects (total 3,500 MW) 
included in the priority program of the Brazilian federal government as 
follows:
- the 500 MW power station in the city of Araraquara (state of Sao Paulo), 
still without any partner;
- the 88 MW power stations Alto Tiete I and II (state of Sao Paulo), still 
without any partner;
- the 180 MW power station Cachoeira Paulista (state of Sao Paulo), still 
without any partner;
- the 180 MW power station Indaiatuba (state of Sao Paulo), still without any 
partner;
- the 480 MW power station Vale do Paraiba (state of Sao Paulo), in 
partnership with the Brazilian oil company Petrobras;
- the 250 MW power station Corumba (state of Mato Grosso do Sul), in 
partnership with the Brazilian companies Vale do Rio Doce (CVRD) and 
Petrobras;
- the 300 MW power station in the city of Campo Grande (state of Mato Grosso 
do Sul) through the company Enersul;
- the 500 MW power station of Vitoria (state of Espirito Santo) through the 
company Escelsa, in partnership with Petrobras and Vale do Rio Doce;
- the 720 MW power station Norte Fluminense (state of Rio de Janeiro), in a 
partnership of the companies Eletrobras, Petrobras, Light, Cerj and Escelsa.


BRAZIL: EDP TO INVEST IN THERMAL POWER STATIONS
Expansion, 08 Mar 2000, p.11:-
 Nearly Euro 1,336mn will be allocated in a three-year term by Portuguese 
electricity operator Electricidade de Portugal (EDP), in order to build 
thermal power stations in Brazil.


SPAIN: IBERDROLA TO EXPAND BUSINESS
El Pais, 09 Mar 2000, p.71:-
 According to Mr. Antonanzas, responsible for international expansion of 
Spanish electricity operator Iberdrola, the group intends to become a global 
services operator.  In this sense, it will allocate in a five-year term, 
nearly 11% of its assets, totalling Pta 400,000mn.
On the other hand, Mr. Antonanzas has ratified that Iberdrola has focused on 
Brazil and Mexico its expansion plans in Southern and Central America.


BRAZIL: ALLIANT IN PETROBRAS' POWER STATION
Gazeta Mercantil, 09 Mar 2000, p. c-6:-
 The US group Alliant will participate in the project for the construction of 
a 100 MW thermal power station of the Brazilian state-owned oil company 
Petrobras in the Brazilian city of Aracaju (state of Sergipe) with investment 
of US$ 100mn.


ARGENTINA: CENTRAL COSTANERA-EDESUR AGREEMENT
El Cronista Comercial, 07 Mar 2000, p. 18:-
 Argentina's energy generation firm Central Costanera signed an agreement 
with energy distribution company Edesur through which Central Costanera will 
continue supplying electricity to Edesur for an additional 8-year term as of 
May 1, 2000. The agreement implies a reserve of electricity of Central 
Costanera available for the demand of Edesur which may reach a maximum of 725 
MW during the Winter season (June to September). 


ARGENTINA: ENRON CLOSES CONTRACT WITH EDEN
Buenos Aires Economico, 06 Mar 2000, p. 2:-
 US-based Enron signed a year contract to supply 20% of the electricity 
demand of Argentina's energy distribution firm Empresa Distribuidora de 
Energia del Norte (EDEN) based in the Northern area of the province of Buenos 
Aires. EDEN, an AES-PSEG firm, has annual sales of 3,570 GW. In Argentina, 
Enron operates TGS, a gas distribution company. The firm has recently started 
the construction of a combined cycle station in Cuiaba, Brazil, which will 
operate with gas imported from Bolivia and will initially supply electricity 
to Brazil but may also demand additional gas from Argentina.


BRAZIL: COSERN'S DEBENTURES
Jornal do Commercio, 09 Mar 2000, p. a-19:-
 An extraordinary general shareholders meeting was held on March 3rd 2000 
approving a public issue of debentures by the Brazilian electricity company 
Cosern (Companhia Energetica do Rio Grande do Norte).
A total of 9,000 debentures will be issued on April 1st 2000 with value of R$ 
10,000 each. 


BRAZIL: INTERESTED COMPANIES IN OIL AREAS
Gazeta Mercantil, 09 Mar 2000, p. A-11:-
 According to the Brazilian National Petroleum Agency (ANP), by March 3rd 
2000, 36 companies had showed interest to participate in the oil exploration 
and production concession tenders  which will probably be held in the 
beginning of July 2000. 
From these 36 companies, 34 are already registered. ANP informed that, from 
the registered companies, at least 10 did not participate of the first round 
of oil areas tenders.
The ANP expects that more companies will participate of these tenders 
compared to the first round of tenders. The agency will hold workshops on 
March 15th and 16th in order to explain everything about the concessions.
The only companies which revealed that will participate of the tenders are 
the state owned Brazilian Petroleum Company (Petrobras) and Enterprise Oil do 
Brasil.


ARGENTINA: TOTALFINA INVESTED US$ 70MN HERE
El Cronista Comercial, 09 Mar 2000, p. 14:-
 On March 8, 2000, French-Belgian TotalFina announced it had started to 
operate its US$ 70mn liquefied petroleum gas processing plant in the province 
of Tierra del Fuego, Southern Argentina. The plant is owned by Cuenca Marina 
Austral I, a consortium conformed by Total Austral (37.5%), Wintershall 
Energia (37.5%) and Pan American Energy (25%). The plant has an installed 
capacity to process 8mn cubic metres of gas per day and produce 250,000 
annual tons of LPG and 60,000 tons of other liquid derivatives of oil and 
gas. The LPG produced will be sent through a pipeline to Puerto Arenas, Chile 
and marketed in Chile and Brazil.



ARGENTINA/CHILE: REPSOL-ENAP AGREEMENT
El Cronista Comercial, 07 Mar 2000, p. 18:-
 Chile's oil firm Enap and its Spanish-Argentine counterpart Repsol-YPF may 
close an agreement to develop joint-ventures in the area of gas distribution 
in Chile and Argentina as of April 2000. Both firms are already partners in 
the Estenssoro-Pedrals gas pipeline which links the Neuquen province gas 
fields with Talcahuano and Chile's Pacific gas pipeline. They are also 
partners in projects in Venezuela and Ecuador. The alliance is supported by 
the possible acquisition of Transcanada's assets by Enap. Repsol is studying 
similar alliances with Petropar from Paraguay and Petrobras from Brazil.


URUGUAY: GASODUCTO CRUZ DEL SUR WORKS COMING UP
El Observador, 06 Mar 2000, p. 9:-
 George Ferguson, the president of the consortium Gasoducto Cruz del Sur, 
announced this firm may start the construction of a natural gas network in 
Southern Uruguay by June 2000. The firm was adjudicated the construction and 
exploitation of a gas pipeline which will allow Argentina to export gas to 
Uruguay. It already accounts with the permission of Uruguay's environment 
protection bureau DINAMA. Early in April 2000, Gasoducto Cruz del Sur will 
call for a tender process to adjudicate the works related to the gas 
pipeline. 


ARGENTINA: PEREZ COMPANC 4Q RESULTS
La Nacion (Argentina), 08 Mar 2000, p. 2/1:-
 Oil sector analysts anticipated that Argentine oil company Perez Companc 
would report profits of some US$ 48 to 49mn in the fourth quarter of 1999, 
down from US$ 53mn in the same period of 1998. The fall was attributed to the 
fact that the method of price insurance used by the company would prevent it 
from receiving the full benefit of the rise in world oil prices during the 
period.


BRAZIL: NO FUELS PRICES INCREASES
O Estado de S.Paulo, 09 Mar 2000, p. b-1:-
 The fuels prices in Brazil will not increase by the end of the 1st half of 
2000 even with the higher oil prices, as informed the Brazilian president 
Fernando Henrique Cardoso on March 8th 2000.


BRAZIL: OIL-ACCOUNT INCREASING
O Estado de S.Paulo, 09 Mar 2000, p. b-1:-
 The Brazilian oil account balance increased from R$ 2.439bn in January 2000 
to R$ 2.55bn in February 2000 and is expected to reach R$ 2.65bn in March 
2000.
The oil-account is the debt of the Brazilian federal government with the 
state-owned oil company Petrobras and it will increase to avoid fuels prices 
increases.


ARGENTINA: SOYA LED 1999 EXPORTS
La Nacion (Argentina), 04 Mar 2000, p. 2/1:-
 Representing 15.4% of Argentina's overall exports of 1999, this country's 
soya exports totalled US$ 3.5975bn during 1999, according to figures released 
by the Argentine statistics bureau INDEC. Soya exports were even over oil and 
gas exports which reached an overall US$ 2.649bn and grew 18.7% during 1999. 
The third position was occupied by automotive exports, which totalled US$ 
1.965bn during 1999, 42.9% under the figure reported during the previous 
year, followed by wheat, sunflower, corn and fishing products exports.


ARGENTINA: CRUDE OIL OUTPUT FELL 5.5%
Buenos Aires Economico, 07 Mar 2000, p. 2:-
 As a result of lower investments destined to oil exploitation activities 
during the first half of 1999, Argentina's crude oil output fell 5.5% during 
1999, on a year-to-year comparison, according to figures released by this 
country's oil and gas institute (IAPG). On the contrary, its natural gas 
output grew 9.8%, always as regards the previous year. The low price reported 
by crude oil during the first half of 1999 discouraged companies to invest in 
the mentioned activities, remarks the IAPG. During 1999, Argentina produced 
116.191mn cubic metres per day of natural gas and 127.233 cubic metres per 
day of crude oil, 33.6% of which was exported.


ARGENTINA: POSSIBLE PETROL INCREASES
El Cronista Comercial, 08 Mar 2000, p. 9:-
 The increase in international oil prices is both a curse and a blessing for 
Argentina. While local oil companies decide whether to raise petrol yet again 
and thereby affect the consumer's pocket, the increase could translate into 
US$ 4.3bn in extra income for the country as result of oil exports. Estimates 
are that oil exports could reach the US$ 7.3bn mark for 2000, or 2.5 times 
that of 1999, thus becoming Argentina's main export. 


BOLIVIA/CHILE/PARAGUAY: NEW MANAGER OF ESSO
El Cronista Comercial, 06 Mar 2000, p. 14:-
 John McCaffrey has been appointed as the president of the board of Esso, an 
Exxon company, and as functional representative of this firm for Bolivia, 
Chile, Paraguay and Uruguay, replacing Jens Dreyer who returned to work at 
Esso's Central Europe Unit based in Hamburg, Germany.


BRAZIL: TEXACO TO PAY FOR ENVIRONMENT ACCIDENT
Jornal do Commercio, 09 Mar 2000, p. a-13:-
 The Brazilian subsidiary of the US oil company Texaco accepted on March 8th 
2000 to pay indemnities related to an environmental accident with the sinking 
of a ferryboat in the River Para.
Indemnities will be paid to public institutions which had expenses to support 
the recovery of the ferryboat and to fisherpeople and people who live close 
to the river and were hindered by the accident.


MEXICO: ENRON TO RUN BUFETE
El Economista (Mexico), 03 Mar 2000, p. online:-
 Creditors of the bankrupt Mexican construction firm, Bufete Industrial, have 
decided to hand over the running of the company to the US-based Enron 
Engineering & Construction Company (EECC) in exchange for a minority share in 
the new company. Bufete will continue to have its headquarters in Mexico 
city. Bufete creditors are Citibank, Serfin and Bancomext. 


MEXICO: CANTARELL PLATFORMS INSTALLED
El Financiero (Mexico), 06 Mar 2000, online:-
 Mexican state oil company Pemex has announced that the first habitational 
platforms forming part of the Cantarell offshore oil project will be 
installed during March 2000. The Akal B and Akal L modules will be installed 
by the consortium Cabyl, formed by US-based Enron, Brazilian Odebrecht and 
Mexican CIGSA, under a US$ 102.6mn. The consortium has a total of three 
contracts for habitational platforms at the site, valued at US$ 274mn.


ARGENTINA: GOV'T AGAINST OIL REGULATIONS
El Cronista Comercial, 09 Mar 2000, p. 5:-
 Argentina's Energy Secretary, Daniel Montamat, qualified as interventionist 
a proposed bill to fix oil prices recently introduced in the senate. Montamat 
contends that those who wrote the bill forget that YPF is no longer a 
state-owned company. The administration of Argentine president, Fernando de 
la Rua, is about to introduce its own oil bill that would back up the current 
deregulation of this market.


LATIN AMERICA: IBERDROLA WILL INVEST US$ 2.325BN
Folha de S.Paulo, 09 Mar 2000, p. 2-8:-
 The Spanish company Iberdrola informed on March 8th 2000 its plans for Latin 
America:
- investments of US$ 2.325bn by the year 2005, probably be more concentrated 
in Brazil and Mexico;
- some partnerships with the also Spanish group Telefonica;
- in Brazil, will concentrate its operations in the cellular telephony sector 
(Iberdrola is shareholder of the Brazilian cellular telephony operators Tele 
Leste Celular and Tele Sudeste Celular), and will probably sell its shares in 
fixed telephony operators, because the Brazilian telecommunications rules do 
not allow companies to have fixed and cellular telephony operations in the 
same areas;
- will participate of the next privatisation processes to be promoted in 
Brazil and Mexico.
Iberdrola expects a profit of approximately US$ 170mn in the year 2004 in the 
Latin America and has also electricity operations.


BRAZIL: CATAGUASES' THERMOELECTRIC PLANTS
O Estado de S.Paulo, 06 Mar 2000, p. B-2:-
 The Brazilian energy company Companhia Forca e Luz Cataguazes-Leopoldina 
will invest the amount of R$ 210mn to install 2 thermoelectric plants, one in 
the city of Juiz de Fora (state of Minas Gerais) and other in the state of 
Sergipe, in a partnership with the Brazilian Petroleum Company (Petrobras). 
The National Bank for Economic and Social Development (BNDES) will finance 
part of the investments for the construction of these plants, which are part 
of the Thermoelectricity Priority Program 2000-2003.


ARGENTINA: PETROL PRICES REDUCE DEMAND
Clarin, 09 Mar 2000, p. 23:-
 Argentine service stations estimate that petrol and diesel sales fell by 
20-25% in the first two months of 2000 as a result of the rise in prices. 
According to independent service stations association FECRA, average sales 
have fallen from 200-220,000 litres per month two years ago to 150-170,000 at 
present. However, while in 1991 6bn litres of petrol were sold at a price of 
US$ 0.60, in 1999 5.2bn litres were sold at US$ 1 per litre. As a result, oil 
companies saw their income rise from US$ 3.5bn to US$ 5bn, despite the fall 
in volumes sold.


MEXICO: ENRON BUYS ADDITIONAL 10% OF TRIBASA
El Financiero (Mexico), 09 Mar 2000, p. on line:-
 US-based Enron Corp. may expand its current 10% stake in Mexico's 
engineering construction projects developer Tribasa to 20%, to cover the US$ 
27mn loan it granted to this company. Tribasa plans to reduce its financial 
liabilities some US$ 200mn during the year 2000. The firm is 50% controlled 
by the Mexican family Pealoza.