1 / 6

PROJECT DOOR STEP Panama-Global Liquids Office Visit- May 18, 2000 Reported- August 21, 2000

PROJECT DOOR STEP Panama-Global Liquids Office Visit- May 18, 2000 Reported- August 21, 2000. Confidential. Project Doorstep-Panama Review Highlights. Project Objective:

gad
Download Presentation

PROJECT DOOR STEP Panama-Global Liquids Office Visit- May 18, 2000 Reported- August 21, 2000

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PROJECT DOOR STEP Panama-Global Liquids Office Visit- May 18, 2000 Reported- August 21, 2000 Confidential

  2. Project Doorstep-PanamaReview Highlights Project Objective: We performed an on-site review of processes, procedures and controls that support the trading and origination business activities within the Panama Global Trading office. Our procedures included interviewing Suzanne Clapp. We also performed a test of commodity transactions from deal execution through settlement. Team Members: Office Personnel Interviewed: Scott Earnest - Risk Management Suzanne Clapp - Office Manager Tom Moran - Credit John Vickers - AA

  3. Project Doorstep-PanamaCurrent Portfolio Liquids 6-30-00 NOP SCOTT V@R SCOTT YTD P/L SCOTT • Panama office set up to take advantage of favorable tax laws for transactions which are traded off-shore. • Transaction types include sales of bunker fuels, machinery diesel fuelother transactions originated to take advantage of the favorable tax laws. • Global products also provides fuel management services forEnron Caribbean basin operations of the Ege-minsa Power Plant. • Most deal are spot (less than three months). • Largest and longest dated position is the Ege-minsa position (150Kbbls per month through Dec 01). • Storage Leases with Petro-Terminal De Panama provide 2.7mmbbls (3x800Kbbls & 3x120bbls) of capacity to support trading activity.

  4. Project Doorstep - Panama Observations • EFFECTIVE CONTROLS • Reconciliation of Ege-minsa plant volumes occurs in Houston • Legal and Credit review all contracts • Suzanne is fluent in speaking Spanish and is “Enronized” (10+ yrs in Liquids Group) • Houston manages risk books and prepares confirms • Cash is controlled out of Houston

  5. Project Doorstep - Panama Observations

  6. Project Doorstep - Panama Observations • OUTLOOK • As prices move from contango to backwardation, more bunker fuel will be sold. • Begin to use storage as a strategic component in world-wide liquids trading. • EI is trying to develop a power trading market with the aid of the power positions created by ventures involving physical plants

More Related