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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: JZGalt who wrote (13181)	3/1/1998 11:58:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

Not all drilling contracts are paid with pictures of dead presidents. I once managed a rig that worked off of Nigeria and the contract was paid with the local currency and had to be converted. Sometimes they will use a mixture of dollars and local. In these days of a tight market, it may be that drillers are "demanding" payment in dollars. I'm not sure. His Oilyness

To: JZGalt who wrote (13181)	3/1/1998 12:31:00 PM
From: marc chatman	Respond to of 95453

I have to confess I am ignorant on the availability of forward contracts on the Dollar/Bolivar. But in Indonesia, several of my old clients (the ones who actually heeded the advice to hedge their Dollar/Rupiah exposure) survived the recent Rupiah freefall quite nicely. Unfortunately, in the current climate in Indonesia, they probably could have saved the premiums spent on those hedges and ended up in just as good a position since the banks are going to be writing down/off all those dollar loans. I agree, though, that no hedge is perfect, and some minor losses or gains are inevitable.