2Summary Presentation about Enron Enron’s Investments Enron in ArgentinaProposal to ENAP1
3PRESENTATION Enron’s Global Presence Enron around the World Enron’s Presence in Latin AmericaEnron in Latin AmericaEnron’s Presence in the South ConeEnron in the South ConePRESENTATION2
4Enron is one of the leading natural gas companies in the world, present in more than 30 countries, whose total assets exceed US$23 Billion.Enron has broad experience in all energy sectors and is well known as a first mover in creating and expanding markets.Enron’s worldwide services include exploration, production, and distribution of natural gas, as well as construction, operation, and financing of energy facilities, such as pipelines and power plants. In addition to these services, Enron also manages energy commodities and provides risk management in emerging markets.GLOBAL PRESENCE3
5ENRON AROUND THE WORLD 4 Projects in Operation or In Construction HoustonCalgaryLatviaMoscowOsloBitterfeldMarmaraSardiniaMumbaiDabholQatarDubaiMaputoUzbekistanBeijingKuznetsk BasinNovokuznetskGalilee BasinAustraliaSuttonBridgeHaikou CityHainan IslandSingaporeBrisbaneEast JavaPolandJakartaBatangasManilaSubic BayTorontoDominican RepublicPort of SpainKingstonGuatemalaBuenos AiresCaracasPromigas PipelineTeessideLondonParisLa PazSanta CruzCematTRSAGTBGOBSao PauloGasoducto Bolivia/BrasilMozambique PipelineTGSBogotaPuerto RicoCentragasCampo GrandeJohannesburgTurkeyJordanSaudi ArabiaTamil NaduCroatiaDelhiVietnamGuamSongyuXiamenZhaoyinSaipanIvory CoastPortlandCEG/RIOGASProjects in Operation or In ConstructionProjects in DevelopmentPower PlantsPipelinesMain Oil & Gas AssetsPrimary Processing Power PlantsStorage FacilitiesLNG or LPG FacilituiesLiquids Storage FacilitiesClean Combustibles FacilitiesOtherE & PPower PLantsMethane (Coal)LNGor LPG FacilitiesInternational Representation4
6PRESENCE IN LATIN AMERICA Enron is one of the leading energy companies operating in South America, mainly in natural gas. Enron is present in 8 Latin American countries, where total assets equal US$ 3 Billion.Enron owns 15,206 kilometers of South American oil and natural gas pipelines and is the pioneer in the creation of wholesale merchant transactions in Argentina and Brazil.Enron participates in nine local gas distributors (LDC’s) and one power LDC, serves more than 2.0 million customers and counts with exclusive franchises to serve 60.0 million people.Enron has ownership in the first privatized pipeline and in the first independent power project (Proyecto Integrado de Cuiaba) in Brasil.PRESENCE IN LATIN AMERICA5
7Projetos de Exportação Gasoduto Bolivia/Brazil Gasoduto Transportadora ENRON IN LATIN AMERICAHonduras180 MWAccro 3&4Usinas de Gás/ DutosDominican Republic185 MWPuerto Rico507 MWGasoduto Centragás357 milhasProjetos de Exportaçãode GPLVentaneDistribuição de GPLGasoduto Promigas1062 milhasEntercolMarketing JVCamiseaSalvadorCuiabá480 MWThermoelectricIn ServiceIn DevelopmentCommercial ActivitiesIn ProgressIn DevelopmentGasodutos Transredes3,093 milhasGasoduto Bolivia/Brazil1875milhasCEG/RiogasDistribuição de GásPipelinesIn Service or InConstructionIn DevelopmentOfficesBogotáBuenos AiresCaracasGuatemala CityLa PazRío de JaneiroSalvadorSan JuanSanta CruzSanto DomingoSão PauloGasoduto Transportadorade Gas del Sur4,104 milhasLNG FacilitiesIn Development6
8PRESENCE IN THE SOUTHERN CONE Enron supports the regional integrated energy processes, whose purpose is the integral development of the energy sector and the feasible allocation of energy resources, which result from private investment.Enron promotes guarantee in the supply of energy to sustain regional economic development and strengthen the reliability in the integrated energy processes, the competitive frame, and the free access to transportation capacity and markets.Enron’s investments support the development of the privileged geographical position of Bolivia in the Mercosur, which can become the strategic hub of the regional energy integration.PRESENCE IN THE SOUTHERN CONE7
9ENRON IN THE SOUTHERN CONE Cuiabá350700MATO GROSSODO SULB R A Z I LSANTA CRUZB O L I V I AA R G E N T I N AKilometersBeloHorizonteVitóriaRio deJaneiroCuritibaBrasíliaGOIÁSMINAS GERAISESPÍRITOSANTORIO DEJANEIROBAHIAPARANÁRIO GRANDE DO SULA T L A N T I CO C E A NPorto AlegreSANTA CATARINAU R U G U A YSanta Cruzde La SierraP A C I F I CSERGIPEALAGOASPERNAMBUCOLa PazAsunciónMontevideoBuenos AiresSantiagoC H I L EP E R URONDÔNIAPorto VelhoTOCANTINS480 MW Power Plantand 390 Mile PipelineGasoductoTransredes3.093 millasTGS4.104 milesGas/PowerTradingProjects/Businesses Under ConstructionExisting Assets and OperationsPARAÍBAEmsergás0,1 MMcm/d18 customersAlgás0,3 MMcm/d5 customersPBGásCompagásCEG/Riogás LDCs3,3 MMcm/dcustomersCampo GrandeSão PauloSCGásBahiagás1,6 MMcm/d21 customersCopergás0,5 MMcm/d37 customersSÃO PAULOFlorianópolisBolivia-Brasil1.864 millasElektro1,6 Million customersGWhMain InvestmentsGTB/TBGCEG/RíogásGasPart (7 gas LDCs)Cuiabá IPPGas/Power MarketingEmployeesCompanies in Operation: 4,800Commercial ESA:8
10ENRON’S INVESTMENTS Transportadora de Gas del S.A. Local Distribution Companies (LDC’s) in BrasilElektro Area in Sao Paulo StateHidrocarbon Transportation System of Transredes S.A.Bolivia – Brasil (BB – PL) PipelineCuiabá I, Pipeline & ThermoelectricProjects in DevelopmentENRON’S INVESTMENTS11
11GASODUCTO DEL OESTE (NEUBA I) GASODUCTO GRAL. SAN MARTIN GASODUCTO NEUBA IINEUBA II GAS PIPELINETGS Statistics6,819 km of pipeline2.0 Bcf/d peaking capacity1,100,000 TM gas & liquids processign capacityPrivatized in 199298% of the contracted capacity are long term fixed contracts, under a fixed price.Shareholders: Enron 35%, Perez Companc 35%, State 30%COMPLEJO CERRIPROCESSING PLANTGASODUCTO DEL OESTE (NEUBA I)WESTERN GAS PIPELINEGASODUCTO GRAL. SAN MARTINGRAL. SAN MARTIN GAS PIPELINETGS represents almost 60% of the Argentinean natural gas transportation market12
12GAS LDC’s IN BRASIL 1997 Statistics 41.5 % ownership PopulationSanta InesSouthAtlanticOceanPARAGUAYParaMato GrossoMato Grosso do SulGoiasTocantinsMaranhaoPiauiCearáParaibaPernambucoBahiaSergipeAlagoasMinas GeraisSão PauloParanáRio Grandedo SulSantaCatarinado NorteSCGásCompagásBahiagasEmsergasAlgásCopergásPBGasRio deJaneiroEspiritoSantoCEGRiogásGDP(million)(US$ bil)StateLDCGASPARTNortheastBahiaBahiagás12.736.5PernambucoCopergás7.518.8AlagoasAlgás2.65.2SergipeEmsergás1.76.6ParaíbaPBGás3.36.4SouthParanáCompagás9.146.2Santa CatarinaSCGás4.925.2CEG/RIOGÁSSoutheastRio de JaneiroCEG/Riogás13.691.741.5 % ownershipGasPart 17% State-owned % ControlCEG % - Fed Gov34.5%:Rio Gas %CEG/RiogásGasPartStatewide Disco’sGas FieldsOil Fields/Associated GasBBPLPetrobrás PipelinesGasPart Pipeline13
13ELEKTRO – AREA Sao Paulo State Population: 37 million people VOTUPORANGAITAPEVAITANHAÉMATIBAIARIO CLAROANDRADINAGUARUJÁState ofSao PauloSao Paulo StatePopulation: 37 million people96,000 squaredmiles98 GDP = US$ 290 Billion (35% of Brazil)Area de ConcesiónUS$ 600 million in revenues7th largest LDC in Brasil47,000 sq. miles1.6 million customersPopulation: 5.2 million people2,300 employees14
14Hidrocarbons Transportation System Vital Statistics3,500 km of Pipeline2,500 km OilductsEmployees 460Market Capitalization $ MMReferencesPipelinesOilductsGTBGOB15
15Bolivia-Brasil (BB-PL) Pipeline Camisea* Based on 80% of investment in Brazil, 20% in BoliviaBolivia-Brasil (BB-PL) Pipeline16Campo GrandeCorumbaRoboréCarrascoCuiabáAricaSCZOruroRío de JaneiroCórdobaYacuibaSica SicaStatistics3,100 km of pipeline1 Bcf/d capacityPhase I completed March 1999Phase II completed Q1 2000Shareholders % Bol Bra Ave*Enron/Shell/BolPetrobrásBTBBB-PLIn Construction
16Cuiabá I, Pipeline and Thermoelectric Cuiabá I Statistics480 MW in 3 PhasesPhase I MW Q1 99Phase II MW Q2 00Phase III MW Q4 00Pipeline km, 18 inchesMT ‘98 Peak Demand = 578 MWMT ‘02 Peak Demand = 817 MWB R A S I LPipelines in OperationBB-PLCuiabá Spur PipelineCáceresRoboréSan MatíasCuiabá I480 MWGOB17
17Projects In Development Companies In Operation PROJECTS IN DEVELOPMENT Cuiabá350700MATO GROSSODO SULB R A Z I LSANTA CRUZB O L I V I AP A R A G U A YA R G E N T I N AKilometersBeloHorizonteVitóriaJaneiroRio deCuritibaBrasíliaGOIÁSMINAS GERAISESPÍRITOSANTORIO DEJANEIROBAHIAPARANÁRIO GRANDE DO SULA T L A N T I CO C E A NPorto AlegreSANTA CATARINAU R U G U A YSanta Cruzde La SierraP A C I F I CSERGIPEALAGOASPERNAMBUCOLa PazAsunciónMontevideoBuenos AiresSantiagoC H I L EP E R URONDÔNIAPorto VelhoTOCANTINSProjects In DevelopmentCompanies In OperationPARAÍBACampo GrandeSão PauloSÃO PAULOFlorianópolisRioGen960 MWPuerto Suarez150 MWCuiabá II480 MWPROJECTS IN DEVELOPMENT18
18ENRON IN ARGENTINA Enron’s Presence in Argentina Natural Gas Marketing in ArgentinaEletric Energy Marketing in Argentina.2
19Enron’s Presence in Argentina Marketing and Trading of Natural Gas and PowerTransportation of Natural GasEnron International Argentina S.A.Enron Comercializadora de Energía Arg. S.A.Enron Pipeline Co. Arg. S.A.Transportadora de Gas del Sur S.A.Engineering Services and Project ManagementWater Services and TreatmentEnron Engineering & Construction Div.Obras Sanitarias de Mendoza S.A.Azurix S.A.
20Enron’s Presence in Argentina Enron holds 35% of Transportadora de Gas del Sur common stock since Also, Enron is the Technical Operator.Enron was registered as Marketer of Natural Gas in ENARGAS in 1995 and in the Energy Secretary in 1996.Enron belongs to the consortium of Aguas de Mendoza since 1998 and Azurix (Obras Sanitarias de Buenos Aires since 2000).Enron participates in the project management of the General Cerri gas plant expansion since 1996.Enron participates in the project management of Entrerriano pipeline construction since 1998.
21Natural Gas Marketing Activities in Argentina Out of the total natural gas volumes, 32% are marketed and sold through physical and commercial bypass. This volume is composed of around 90 industrial companies and power plants.Enron participates in 5% of this market.Enron has firm transportation capacity contracts with TGS for a period of 10 years.Enron manages and provides services of natural gas and firm and interruptible transportation to customers from the following industrial sectors:AluminumEatable OilsTextilesMiningElectric Power GenerationTotal volume equals m3/day
22Electric Energy Marketing Activities in Argentina Enron registered as a Power Marketer in April 1998.Enron is the first independent Power Marketer in Argentina.Enron signed a marketing agreement to provide 33 MWs.Enron created the first financial swap for 10-MW, the first one in Argentina.Today, Enron markets approximately 110 MW of capacity.Enron acquired a 70 MW generating power plant in Córdoba Province to increase power marketing activities in the region.
23Main Characteristics of the Natural Gas Marketing Agreement PROPOSAL TO ENAP2
24Field Development Gas Supply Agreement Field: To be defined.Buyer: EnronSeller: EnapTerm: 10 years.Start Date: 2002 subject to Enap deliverability.Daily Contractual Quantity (DCQ): On incremental basis.Delivery Point: TGS system or any other to be defined by the parties.Liquids: Buyer will process all available liquids .Transport Risk: Seller will bear the risk up to Delivery Point and Buyer will bear the risk after Delivery Point.
25Field Development Gas Supply Agreement Price: The price will be fixed on a yearly basis.DCQ (MM m3/d) TOP(MM m3/day) Annual Price ($/MM Btu)
26Field Development Gas Supply Agreement Make-Up: 2 years. Buyer will have the right to recover volumes not taken during those 2 years.Take or Pay (TOP): the TOP will be calculated on an annual basis.Seasonal Structures: Buyer will accommodate seasonal structures based upon demand and Enap´s deliverability.Incremental on annual DCQ : Buyer will have an option to increase annual DCQ upon Enap´s deliverability.Notification: Seller will notify Buyer with 60 days in advance to increase annual DCQ.