Paladin Resources PLC
16 December 1999
Enron and Paladin sign Romanian gas marketing agreement
The following is an announcement released today 16 December, 1999 by Enron:
LONDON, ENGLAND -- Upstream development and downstream marketing
capabilities are being combined in a gas marketing agreement signed by Enron
and Paladin Resources for the marketing of natural gas from Blocks 13 and 15
('the Blocks'), located 110 km offshore Romania in the Black Sea. Terms of
the agreement were not disclosed.
The Blocks encompass an existing gas discovery, Doina, discovered by
Enterprise/ARCO in 1995. Paladin acquired a 75% working interest and
operatorship rights from ARCO in September 1999. A 1400 km seismic program
and a well to appraise the discovery are planned for 2000. Under the gas
marketing agreement, Enron has acquired the option to purchase and market
any gas produced from the Blocks.
Roy Franklin, chief executive of Paladin, said,
'Our expertise is in upstream oil and gas activities. Teaming up with Enron
will enable us, through their partnership with Petrom in Petrom Enron Gas,
to sell any gas we produce from the Doina field and also benefit from
Enron's expertise in risk management.'
'We welcome this agreement as a first opportunity to actively strengthen our
relationship with the respected exploration and production team at Paladin,'
said Mark Frevert, chairman and CEO of Enron's European activities. 'There's
strong synergy and value in our working together. The agreement also
reinforces Enron's commitment to Petrom Enron Gas and Romania, and signals
the benefits new participants can bring to the Romanian energy market -
foreign investments and expertise, and access to new and competitively
priced gas supplies. It will also enhance Enron's ability to provide
innovative merchant services to our customers in a rapidly liberalizing
European energy market.'
In July 1998 Enron formed a Romanian joint venture, Petrom Enron Gas, with
Petrom S.A. the national oil company, to market natural gas sourced by the
two partners. Petrom's marketable natural gas portfolio is currently
estimated at more than four billion cubic meters per year, approximately 400
million cubic feet per day. The company is also exploring other
opportunities to develop the Romanian gas market, including finance
activities and asset projects.
Enron: Tel: 020 7783 6689
mmd PR, Enron Romania: Tel: +409 436 1462
Paladin: Tel: 020 7534 2900
College Hill: Tel: 020 7457 2020
Paladin Resources is a publicly traded, London-based independent oil and gas
exploration and production company.
Enron's European activities began in 1989 and are headquartered in London.
Today the company employs more than 1600 people across Europe with principal
offices in Frankfurt, London, Oslo, Moscow and Madrid. Enron is a leading
participant in the liberalised UK and Nordic energy markets and is the
leading new entrant in the rapidly liberalising continental European
markets. Natural gas and electricity marketing businesses are supported by
power stations developed, owned and/or operated by Enron in Croatia, Italy,
Poland, Turkey and the UK, including the world's largest privately-owned
CCGT combined heat and power plant, the 1875 MW Teesside station in the UK.
Enron is one of the world's leading electricity, natural gas and
communications companies. The company, which owns approximately $34 billion
in energy and communications assets, produces electricity and natural gas,
develops, constructs and operates energy facilities worldwide, delivers
physical commodities and financial and risk management services to customers
around the world, and is developing an intelligent network platform to
facilitate online business. Enron's Internet address is www.enron.com, and
the stock is traded under the ticker symbol, 'ENE.'