ENRON and Shell Win Bid in Capitalization of YPFB's Transportation Segment.

LA PAZ, BOLIVIA--(BUSINESS WIRE)-- Dec. 6, 1996--Enron Development Corp. and Shell International Gas Ltd. announced today that the government of Bolivia has named the companies the successful capitalizing company for the transportation segment of the state oil and gas company, Yacimientos Petroliferos Fiscales Bolivianos (YPFB). ENRON and Shell jointly acquired a 50 percent stake in all of the transportation assets of YPFB, including its ownership in 1,655 miles of existing natural gas pipelines, 1,438 miles of existing oil/liquids pipelines and ownership in the Bolivia - to - Brazil Pipeline Project, with a bid of U.S.$263.5 million. The remaining interest in the transportation assets will be held by the Bolivian pension funds.

ENRON has served as a strategic partner with YPFB in the development of the Bolivia - to - Brazil Pipeline Project for the last several years. Upon closing on YPFB's transportation assets, each ENRON and Shell will hold a 29 percent interest in the Bolivian portion of the pipeline project, and ENRON, Shell and the Bolivian pension funds will own 33 percent of the Bolivia - to - Brazil Pipeline Project.

ENRON and Shell expressed their commitment to ensuring that the Bolivia - to - Brazil Pipeline Project moves forward to afford Bolivia a strong revenue source from both transportation and natural gas sales. They noted that with the project, Bolivia is positioned as the natural gas hub of the southern cone and as such, will play a major role in enhancing the economic integration of the region. They noted that as the capitalizing company, the U.S.$263.5 million will be spent over the next eight years to upgrade the existing system to meet national energy requirements and to ensure that sufficient gas can be transported to meet market demand in Brazil and to build the Bolivia - to - Brazil Pipeline Project.

ENRON, one of the world's largest integrated natural gas and electricity companies with approximately $15 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non- regulated marketer of electricity in North America; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns 58 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns 59 percent of Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; and is one of the largest independent developers and producers of electricity in the world. ENRON is traded under the ticker symbol, "ENE."

Shell International Gas is part of the Royal Dutch/Shell Group of companies and is responsible for seeking out and developing new gas business opportunities and providing advice and services to Group companies engaged in natural gas activities. Shell is the world's largest private gas company, that is to say it is the biggest producer and trader of equity owned natural gas and has the largest portfolio of proven gas reserves of any private company. Shell's natural gas business is now spread across 17 companies throughout the world covering exploration and production, processing, liquefaction, transportation and marketing activities.

CONTACT: ENRON

Diane Bazelides, 713/853-6285.