ENRON - ENAP

Field Development

Gas Marketing Agreement

March 2001

SummarySummary

Presentation about Enron

Enron’s Investments

Enron in Argentina

Proposal to ENAP

1

Enron’s Global Presence

Enron around the World Enron’s Presence in Latin

America Enron in Latin America

Enron’s Presence in the South Cone

Enron in the South Cone

2

PRESENTATIONPRESENTATION

Enron 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 PRESENCE

3

ENRON AROUND THE WORLD

Houston

Calgary

LatviaMoscowOslo

Bitterfeld

MarmaraSardinia

MumbaiDabhol

Qatar

Dubai

Maputo

UzbekistanBeijing

Kuznetsk BasinNovokuznetsk

Galilee Basin

Australia

SuttonBridge

Haikou CityHainan Island

Singapore

Brisbane

East Java

Poland

Jakarta

BatangasManila

Subic Bay

Toronto

Dominican Republic

Port of SpainKingstonGuatemala

Buenos Aires

CaracasPromigas Pipeline

Teesside

LondonParis

La Paz Santa CruzCemat

TRSAGTBGOB

Sao Paulo

Gasoducto Bolivia/Brasil

Mozambique Pipeline

TGS

Bogota

Puerto Rico

Centragas

Campo Grande

Johannesburg

Turkey

Jordan

Saudi Arabia

Tamil Nadu

Croatia

Delhi

Vietnam

Guam

SongyuXiamenZhaoyin

Saipan

Ivory Coast

Portland

CEG/RIOGAS

Projects in Operation or In Construction Projects in Development

Power Plants

PipelinesMain Oil & Gas Assets

Primary Processing Power PlantsStorage Facilities

LNG or LPG Facilituies

Liquids Storage FacilitiesClean Combustibles Facilities

Other

E & P

PipelinesPower PLantsMethane (Coal)LNGor LPG Facilities

International Representation

4

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 AMERICA

5

Gasoduto Centragás357 milhas

Gasoduto Bolivia/Brazil1875milhas

Gasoduto Transportadorade Gas del Sur

4,104 milhas

Gasoduto Promigas1062 milhas

Gasodutos Transredes3,093 milhas

Cuiabá480 MW

VentaneDistribuição de GPL

EntercolMarketing JV

CEG/RiogasDistribuição de Gás

Accro 3&4Usinas de Gás/ Dutos

Honduras180 MW

Projetos de Exportação de GPL

CamiseaSalvador

ENRON IN LATIN AMERICADominican Republic

185 MW Puerto Rico507 MW

Thermoelectric

In Service

In Development

LNG Facilities

In Development

Pipelines

In Service or In Construction

In Development

Commercial Activities

In Progress

In Development

Offices

Bogotá Buenos Aires Caracas Guatemala City La Paz Río de Janeiro Salvador San Juan Santa Cruz Santo Domingo São Paulo

6

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 CONE

7

ENRON IN THE SOUTHERN CONE

Cuiabá

0 350 700

MATO GROSSODO SUL

B R A Z I L

SANTA CRUZ

B O L I V I A

A R G E N T I N A

MATO GROSSO

Kilometers

BeloHorizonte

Vitória

Rio deJaneiro

Curitiba

BrasíliaGOIÁS

MINAS GERAIS

ESPÍRITOSANTO

RIO DEJANEIRO

BAHIA

PARANÁ

RIO GRANDE DO SUL

A T L A N T I C O C E A N

Porto Alegre

SANTA CATARINA

U R U G U A Y

Santa Cruzde La Sierra

P A C I F I C O C E A N

SERGIPE

ALAGOAS

PERNAMBUCO

La Paz

Asunción

MontevideoBuenos Aires

Santiago

C H I L E

P E R U

RONDÔNIA

Porto Velho

TOCANTINSCuiabá 480 MW Power Plant

and 390 Mile Pipeline

GasoductoTransredes3.093 millas

TGS4.104 miles

Gas/PowerTrading

Projects/Businesses Under Construction

Existing Assets and Operations

PARAÍBA

Emsergás0,1 MMcm/d

18 customers

Algás0,3 MMcm/d5 customers

PBGás0,1 MMcm/d

18 customers

Compagás

CEG/Riogás LDCs3,3 MMcm/d

551.000 customers

Campo Grande

São Paulo

SCGás

Bahiagás1,6 MMcm/d

21 customers

Copergás0,5 MMcm/d

37 customers

SÃO PAULO

Florianópolis

GasoductoBolivia-Brasil 1.864 millas

Elektro1,6 Million customers

10.500 GWh

Main Investments

• TGS• Transredes• GTB/TBG• CEG/Ríogás• GasPart (7 gas LDCs)• Cuiabá IPP• Elektro• Gas/Power Marketing

Employees

• Companies in Operation: 4,800• Commercial ESA: 200

Main Investments

• TGS• Transredes• GTB/TBG• CEG/Ríogás• GasPart (7 gas LDCs)• Cuiabá IPP• Elektro• Gas/Power Marketing

Employees

• Companies in Operation: 4,800• Commercial ESA: 200

8

Transportadora de Gas del S.A.

Local Distribution Companies (LDC’s) in Brasil

Elektro Area in Sao Paulo State Hidrocarbon Transportation System of

Transredes S.A.

Bolivia – Brasil (BB – PL) Pipeline

Cuiabá I, Pipeline & Thermoelectric

Projects in Development

11

ENRON’S ENRON’S INVESTMENTSINVESTMENTS

TGS Statistics

• 6,819 km of pipeline• 2.0 Bcf/d peaking capacity• 1,100,000 TM gas & liquids processign

capacity• Privatized in 1992• 98% of the contracted capacity are long

term fixed contracts, under a fixed price.

• Shareholders: Enron 35%, Perez Companc 35%, State 30%

TGS Statistics

• 6,819 km of pipeline• 2.0 Bcf/d peaking capacity• 1,100,000 TM gas & liquids processign

capacity• Privatized in 1992• 98% of the contracted capacity are long

term fixed contracts, under a fixed price.

• Shareholders: Enron 35%, Perez Companc 35%, State 30%

TGS represents almost 60% of the Argentinean natural gas transportation market

TGS represents almost 60% of the Argentinean natural gas transportation market

N E U Q U É NC H I L E

Neuquén

S A N T A C R U Z

M E N D O Z A

Paso Flores

C H U B U T

R I O N E G R O

T I E R R AD E L

F U E G O

Puerto Santa Cruz

Río Gallegos

San Sebastián

Puerto San Julián

L A P A M P A

A R G E N T I N A

S A NL U I S

Comodoro Rivadavia

B U E N O S A I R E S

C O R D O B A

Bolivar

Bahia Blanca

San Antonio Oeste

General Conesa

0

I S L A S M A L V I N A S

Olavarria

Tandil

Buenos Aires

200

Kilometers

400

U R U G U A Y

Montevideo

GASODUCTO DEL OESTE (NEUBA I)WESTERN GAS PIPELINE

GASODUCTO GRAL. SAN MARTINGRAL. SAN MARTIN GAS PIPELINE

COMPLEJO CERRIPROCESSING PLANT

GASODUCTO NEUBA IINEUBA II GAS PIPELINE

12

GAS LDC’s IN BRASIL

Santa Ines

SouthAtlanticOcean

PARAGUAY

Para

Mato Grosso

Mato Grosso do Sul

Goias

Tocantins

Maranhao

Piaui

CearáParaiba

Pernambuco

Bahia

Sergipe

Alagoas

Minas Gerais

São Paulo

Paraná

Rio Grandedo Sul

SantaCatarina

Rio Grandedo Norte

Maranhao

SCGás

Compagás

Bahiagas

Emsergas

Algás

Copergás

PBGas

São Paulo

Rio deJaneiro

EspiritoSanto

CEGRiogás

1997 Statistics Population GDP

(million) (US$ bil)State LDC

GASPARTNortheast

Bahia Bahiagás 12.7 36.5Pernambuco Copergás 7.5 18.8Alagoas Algás 2.6 5.2Sergipe Emsergás 1.7 6.6Paraíba PBGás 3.3 6.4

SouthParaná Compagás 9.1 46.2Santa Catarina SCGás 4.9 25.2

CEG/RIOGÁSSoutheast

Rio de Janeiro CEG/Riogás 13.6 91.7

CEG/Riogás

GasPart

Statewide Disco’s

Gas Fields

Oil Fields/Associated Gas

BBPL

Petrobrás Pipelines

GasPart Pipeline

13

ELEKTRO – AREA

VOTUPORANGA

ITAPEVA

ITANHAÉM

ATIBAIARIO CLARO

ANDRADINA

GUARUJÁ

State ofSao Paulo

Sao Paulo State

Population: 37 million people

96,000 squaredmiles

98 GDP = US$ 290 Billion (35% of Brazil)

Sao Paulo State

Population: 37 million people

96,000 squaredmiles

98 GDP = US$ 290 Billion (35% of Brazil)

Area de Concesión US$ 600 million in

revenues 7th largest LDC in Brasil 47,000 sq. miles 1.6 million customers Population: 5.2 million

people 2,300 employees

Area de Concesión US$ 600 million in

revenues 7th largest LDC in Brasil 47,000 sq. miles 1.6 million customers Population: 5.2 million

people 2,300 employees

14

Hidrocarbons Transportation System

15

Vital Statistics

• 3,500 km of Pipeline• 2,500 km Oilducts• Employees 460• Market Capitalization $263.5 MM

References

• Pipelines • Oilducts• GTB• GOB

Camisea

* Based on 80% of investment in Brazil, 20% in Bolivia

Bolivia-Brasil (BB-PL) Pipeline

16

Campo Grande

CorumbaRoboré

Carrasco

Cuiabá

Arica

SCZ

Oruro

Río de Janeiro

Córdoba

Camisea

Yacuiba

Sica Sica

Statistics• 3,100 km of pipeline• 1 Bcf/d capacity• Phase I completed March 1999• Phase II completed Q1 2000• Shareholders % Bol Bra Ave*

Enron/Shell/Bol. 85 20 33 Petrobrás 9 51 43 BTB 6 29 24

Statistics• 3,100 km of pipeline• 1 Bcf/d capacity• Phase I completed March 1999• Phase II completed Q1 2000• Shareholders % Bol Bra Ave*

Enron/Shell/Bol. 85 20 33 Petrobrás 9 51 43 BTB 6 29 24

BB-PL

In Construction

Cuiabá I, Pipeline and Thermoelectric

Cuiabá I Statistics• 480 MW in 3 Phases

• Phase I - 150 MW Q1 99• Phase II - 300 MW Q2 00• Phase III - 480 MW Q4 00

• Pipeline - 628 km, 18 inches• MT ‘98 Peak Demand = 578 MW• MT ‘02 Peak Demand = 817 MW

Cuiabá I Statistics• 480 MW in 3 Phases

• Phase I - 150 MW Q1 99• Phase II - 300 MW Q2 00• Phase III - 480 MW Q4 00

• Pipeline - 628 km, 18 inches• MT ‘98 Peak Demand = 578 MW• MT ‘02 Peak Demand = 817 MW

B R A S I L

Pipelines in OperationBB-PLCuiabá Spur Pipeline

Cáceres

Roboré

San Matías

Cuiabá I480 MW

GOB

BB-PL

17

Cuiabá

0 350 700

MATO GROSSODO SUL

B R A Z I L

SANTA CRUZ

B O L I V I A

P A R A G U A Y

A R G E N T I N A

MATO GROSSO

Kilometers

BeloHorizonte

Vitória

Rio deJaneiro

Curitiba

BrasíliaGOIÁS

MINAS GERAIS

ESPÍRITOSANTO

RIO DEJANEIRO

BAHIA

PARANÁ

RIO GRANDE DO SUL

A T L A N T I C O C E A N

Porto Alegre

SANTA CATARINA

U R U G U A Y

Santa Cruzde La Sierra

P A C I F I C O C E A N

SERGIPE

ALAGOAS

PERNAMBUCO

La Paz

Asunción

MontevideoBuenos Aires

Santiago

C H I L E

P E R U

RONDÔNIA

Porto Velho

TOCANTINS

Projects In Development

Companies In Operation

PARAÍBA

Campo Grande

São Paulo

SÃO PAULO

Florianópolis

RioGen 960 MW

Puerto Suarez 150 MW

Cuiabá II 480 MW

PROJECTS IN DEVELOPMENT

18

Enron’s Presence in Argentina

Natural Gas Marketing in Argentina

Eletric Energy Marketing in Argentina.

2

ENRON IN ARGENTINAENRON IN ARGENTINA

Enron’s Presence in Argentina

Enron Pipeline Co. Arg. S.A. Transportadora de Gas del Sur S.A.

Water Services and Treatment

Engineering Services and Project Management

Marketing and Trading of Natural Gas and Power

Obras Sanitarias de Mendoza S.A.

Azurix S.A.

Enron International Argentina S.A.Enron Comercializadora de Energía Arg. S.A.

Enron Engineering & Construction Div.

Transportation of Natural Gas

Enron’s Presence in Argentina

Enron holds 35% of Transportadora de Gas del Sur common stock since 1992. 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.

Natural 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:– Aluminum– Eatable Oils– Textiles– Mining– Electric Power Generation

Total volume equals 855.000 m3/day

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.

Electric Energy Marketing Activities in Argentina

Main Characteristics of the Natural Gas Marketing Agreement

2

PROPOSAL TO ENAP PROPOSAL TO ENAP

Field DevelopmentGas Supply Agreement

Field: To be defined.

Buyer: Enron

Seller: Enap

Term: 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.

Price: The price will be fixed on a yearly basis.

DCQ (MM m3/d) TOP(MM m3/day) Annual Price ($/MM Btu)

2002 1.0 0.6 0.60

2003 1.2 0.7 0.62

2004 1.5 0.9 0.64

2005 1.8 1.0 0.66

2006 2.0 1.2 0.68

2007 2.0 1.5 0.70

2008 2.0 1.5 0.72

2009 2.0 1.5 0.74

2010 2.0 1.5 0.76

2011 2.5 1.5 0.78

Field DevelopmentGas 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.

Field DevelopmentGas Supply Agreement