Gas Natural keeps Latin American expansion

Baker & McKenzie LLP represented Spanish energy services multinational, Gas Natural Internacional SDG, S.A. and its parent company Gas Natural SDG, S.A. in connection with all aspects related to an approximately EUR 129,000,000.00 share acquisition by Gas Natural Internacional SDG, S.A. related to two equity stakes owned by Enron International Brazil Gas Holdings LLC in (i) Companhia Distribuidora de Gás de Rio de Janeiro (?CEG?); and (ii) CEG Rio, S.A. (?CEG-Rio?), respectively. Enron International Brazil Gas Holdings LLC, is currently managed by Citibank , N.A. in its capacity as Portfolio Manager, pursuant to certain settlement agreement approved by the U.S. Bankruptcy Court administering the bankruptcy case of Enron Corp.

Gas Natural sought New York and international law advice from Chicago-based project finance and oil & gas partners Jerome W. Jakubik and José A. Morán, and associate Stephen T. Nelson. Further, Joe Samet and Ira Reid, partners of the New York office of Baker & McKenzie LLP advised Gas Natural in connection with bankruptcy matters derived from this acquisition, particularly with respect to sales under Section 363 of the U.S. Bankruptcy Code.

Further, Gas Natural sought Brazilian law advice from Manoel Vargas Franco Netto, Pedro Paulo Salles Cristofaro and Paulo Eduardo Penna, partners at the Rio de Janeiro law firm of Lobo & Ibeas Advogados.

Enron sought New York advice from in-house lawyer William C Krenz and from senior associate Jeffrey D. Hopkins of Weil, Gosthal & Manges LLP, Houston office. In addition, James P. Muenker, associate, of the Weil office in Dallas assisted Enron in connection with bankruptcy matters derived from this acquisition. Additionally, Enron sought Brazilian law advice from Antonio Corrêa Meyer, José Samurai Saiani, Celso de Paula F. da Costa partners at Machado, Meyer, Sendacz & Opice Advogados and from associate Rafaela Frazão Kireeff.

In this transaction Citibank was represented by Shearman & Sterling LLP, led by partner Stephen M. Besen, and associates, Denis R. Rajotte, Amanda J. Clyne and Sean J. Skiffington. Citibank was advised on Brazilian law by senior associate Kevin Michael Altit of Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados.

CEG supplies three types of gas; natural, manufactured and LPG (Liquefied Petroleum Gas), intended for its various markets. CEG?s piped gas distribution area includes, in addition to the city of Rio de Janeiro, 20 additional municipalities. CEG-Rio was privatized in July, 1997, and since then, has been managed by the Spanish group Gas Natural. CEG-Rio?s area of activity is the North and Northeast of the State of Rio, the coastal lowlands, the Paraíba River midlands, the mountain region, the South-Central region and the Bay of Ilha Grande, which includes 65 municipalities within the State of Rio de Janeiro.

CEG and CEG-Rio clients totaled 620,000 in 2003 and are expected to surpass 900,000 in 2007. Gas sales stood close to 30,000 gigawatt hours in 2003, 31% higher than the previous year, thanks to the increase in gas-fueled power generation and to higher gas consumption in the auto industry.

In the region of the Americas, Gas Natural is looking to increase its client base by 38% to 5.87 million, mainly boosted by expected growth in Brazil, Mexico and Colombia.