-----Original Message-----
From:  "Erazo Z., Ricardo (SIP_Stgo)" <ricardo.erazo@sipetrol.cl>@ENRON 
[mailto:IMCEANOTES-+22Erazo+20Z+2E+2C+20Ricardo+20+28SIP+5FStgo+29+22+20+3Cric
ardo+2Eerazo+40sipetrol+2Ecl+3E+40ENRON@ENRON.com] 
Sent: Wednesday, May 23, 2001 4:38 PM
To: Hilgert, Chris
Cc: Reid, Dan (SIP_USA); Harambour, Alberto (SIP_USA); Harambour G.,Salvador 
(SIP_Stgo); Lee R., Patricio O. (Casa Matriz); Rodriguez M.,Federico 
(SIP_Stgo)
Subject: Your Enap-Enron Letter Agreement Proposal

Dear Chris:

Thanks for your Letter Agreement proposal. In general, we acept their terms.
However, we suggest little modifications as you can see in the attachment.
Please, if you agree we can executed it and return it to Enron .

Sincerely yours

Ricardo Erazo
Domestic E&P Contracts Manager

-----Original Message-----
From: Reid, Dan (SIP_USA)
Sent: Lunes, 07 de Mayo de 2001 12:40
To: 'danielreid@aol.com'
Subject: FW: Revised Letter Agreement-DRAFT


 <<ENAP Letter Agreement-DRAFT (5.2.01).doc>>


-----Original Message-----
From: Hilgert, Chris
To: Alberto Harambour; Daniel Reid
Sent: 5/2/01 11:10 AM
Subject: Revised Letter Agreement-DRAFT

Gentlemen,

You will find attached a simplified letter agreement between Enron and
ENAP regarding the contemplated transaction that outlines a time frame
of sixty days to come to a term sheet to transact on.  We believe that
the confidentiality agreement currently in place dated January 21, 2000
is sufficient to cover this area as it was written with a defined "Area"
as the "Magallanes Area in Southern Chile which includes but is not
necessarily limited to, geological and geophysical data, maps, models,
and interpretations, and may also include information relating to the
business of ENAP, engineering and production data, as well as
commercial, contractual, and financial information (collectively, the
"Confidential Information")."  At most, we may need to amend the CA to
identify Enron North America and Enron South America as the
counterparties as opposed to Enron Global Exploration & Production.

I apologize for the time it took to get this to you.  Our attorney has
been out and rather swamped and we just closed a big deal on Monday that
was burying me for the last week and we have been spending some time
with our South American group formulating strategy on this deal.
Nonetheless, we look forward to your response and to getting this
process moving to create value for ENAP.  Please call me after you have
had a chance to review this.

 <<ENAP Letter Agreement-DRAFT (5.2.01).doc>>

Sincerely,
Chris Hilgert
Director
Enron Compression Services
 <<ENAP Letter Agreement-DRAFT (5.2.01).doc>>


 - ENAP Letter Agreement-DRAFT (5.2.01).doc