enron mentions companies : bg group buys assets in india from enron - - - u . k . company extends reach at a bargain price
the wall street journal europe , 10 / 04 / 01
world watch
the wall street journal , 10 / 04 / 01
world business briefing europe : britain : petroleum purchase
the new york times , 10 / 04 / 01
companies & finance uk - bg to expand assets in india .
financial times ( u . k . edition ) , 10 / 04 / 01
cisco , extreme networks surge as technology stocks lead rally
the wall street journal , 10 / 04 / 01
enron to sell assets in oil , gas off india
houston chronicle , 10 / 04 / 01
edison rates to remain high under utility ' s deal with state
associated press newswires , 10 / 04 / 01
india press : enron unit defaults on interest payment
dow jones international news , 10 / 04 / 01
bg pays enron pounds 263 m for indian oil and gas
the independent - london , 10 / 04 / 01
india : bg india to buy enron ' s gas , oil assets
business line ( the hindu ) , 10 / 04 / 01
former enron executive to head homeland security
houston chronicle , 10 / 04 / 01
british gas to buy enron ' s oil , gas assets for $ 388 m
business standard , 10 / 04 / 01
companies : bg group buys assets in india from enron - - - u . k . company extends reach at a bargain price
by michael wang and sri jegarajah
dow jones newswires
10 / 04 / 2001
the wall street journal europe
5
( copyright ( c ) 2001 , dow jones & company , inc . )
london - - bg group plc extended its reach in the indian subcontinent and expanded its exploration and production portfolio with the purchase of the offshore indian assets of u . s . energy group enron corp . for $ 388 million ( 422 million euros ) .
analysts applauded the purchase by the u . k . oil and gas company , saying it is acquiring some promising assets inexpensively . the price works out to less than $ 2 . 30 per barrel of oil equivalent , given the proven and probable reserves of more than 170 million barrels of oil equivalent of enron oil & gas india ltd . " we value other indian oil and gas reserves at $ 2 . 90 ( assuming an oil price of $ 18 ) , so bg appears to have paid a good price , " said abn amro in a research note .
a bombay - based energy analyst reckoned enron " probably undersold , " noting that earlier this year indian state - owned oil & natural gas corp . , a partner of enron ' s indian unit , had its $ 400 million offer for the assets rejected .
enron has experienced mixed success as an integrated energy operator in india , and is attempting to exit the controversial dabhol power project , india ' s largest private power plant , in which it has a 65 % controlling stake .
the indian unit ' s assets comprise a 30 % stake in the tapti gas field and the panna / mukta oil and gas field , and a 62 . 64 % interest in the cb - os / 1 exploration license in the gulf of cambay off western india . the enron unit is the designated operator of these developments .
equity production from the fields amounts to 20 , 000 barrels of oil equivalent a day , representing about 6 % to 7 % of bg ' s total output . for the year ended march 31 , enron ' s indian unit posted pro forma profit after tax of $ 60 million on revenue of $ 160 million .
the acquisition complements bg ' s fledgling refining and marketing interests in india , which include holdings in western indian distributors gujarat gas co . ( 65 % ) and mahanagar gas ( 50 % ) . it is also the driving force behind a project to pipe liquefied natural gas from iran to tap india ' s growing appetite for gas .
copyright ? 2000 dow jones & company , inc . all rights reserved .
international
world watch
compiled by david i . oyama
10 / 04 / 2001
the wall street journal
al 7
( copyright ( c ) 2001 , dow jones & company , inc . )
bg to buy enron assets offshore india
british oil and natural - gas company bg group agreed to acquire the offshore indian assets of u . s . energy company enron for $ 388 million . the purchase of enron oil & gas india , with proven and probable reserves of more than 170 million barrels of oil equivalent , is valued at about $ 2 . 30 a barrel , a bargain by international standards , analysts said . enron has had mixed success as an integrated energy company in india , and is attempting to unwind its 65 % stake in dabhol power , india ' s largest private - sector power plant .
copyright ? 2000 dow jones section w
world business briefing europe : britain : petroleum purchase
by suzanne kapner ( nyt )
10 / 04 / 2001
the new york times
page 1 , column 4
c . 2001 new york times company
the bg group of britain agreed to buy the oil and natural gas fields of enron in india for $ 388 million . the operations include a 30 percent stake in the tapti gas field and the panna / mukhta oil and gas fields , plus 63 percent of an untapped deposit on the country ' s west coast . bg said the assets held more than 170 million barrels of oil and gas . they do not include enron ' s dabhol power project , which has been entangled in a nine - month payment dispute with the maharashtra state electricity board . enron is looking to sell its 64 percent stake in the project for $ 1 . 2 billion to cover the cost of its investment . tata power and bses , both of india , have indicated an interest , people close to the talks said . suzanne kapner ( nyt )
copyright ? 2000 dow jones & company , inc . all rights reserved .
companies & finance uk - bg to expand assets in india .
by matthew jones .
10 / 04 / 2001
financial times ( u . k . edition )
( c ) 2001 financial times limited . all rights reserved
bg , the gas and oil group , has stepped up its efforts to develop india into one of its core markets with the $ 388 m ( # 262 m ) purchase of assets owned by enron , the us energy and trading group .
the deal is the latest sign of enron ' s retreat from the region , and comes as the group is separately attempting to withdraw from the $ 2 . 8 bn dabhol power plant following a payment dispute with maharashtra state .
bg is placing particular emphasis on developing markets .
it has operated in india for 10 years but has so far concentrated on gas distribution through a 65 per cent interest in gujarat gas company and a joint venture with the gas authority of india in mumbai .
david mcmanus , bg executive vice - president responsible for eastern hemisphere business , said the transaction would give it the opportunity to develop the indian gas market . the company has a view to creating demand for imported liquefied natural gas through bg ' s planned pipavav lng terminal in gujarat .
" india has the second fastest - growing gas market after china and we see it as a core place to use our expertise , " he said .
the agreement is subject to confirmation from enron ' s partners that bg will be able to take over operating the fields , and consent from the indian government .
analysts said the acquisition was a logical next step for bg and appeared good value against market expectations of a $ 600 m price for the assets .
iain reid of ubs warburg said : " either bg are extremely good negotiators or there is an element of risk attached to the speed at which production can be increased . "
( c ) copyright financial times ltd . all rights reserved .
http : / / www . ft . com .
copyright ? 2000 dow jones & company , inc . all rights reserved .
abreast of the market
cisco , extreme networks surge as technology stocks lead rally
by robert o ' brien
dow jones newswires
10 / 04 / 2001
the wall street journal
c 2
( copyright ( c ) 2001 , dow jones the industrial average ended at 9123 . 78 .
" there was a real nice tone to the market today , " said pat davis , head of nasdaq trading at ubs warburg , said . " but i don ' t think you can say we ' ve heard all the bad news we ' re going to hear .
over the past three weeks , wall street analysts had been systematically reducing their earnings projections to better reflect the deterioration in economic conditions . only over the past several days had they begun to focus on valuations , saying that , in some instances , stock prices looked attractive , even projecting weaker earnings .
lehman brothers , for example , jumped to the defense of some software names , and a number of those marked improvement . shares of peoplesoft gained 3 . 14 , or 15 % , to 23 . 68 on the nasdaq , a 50 % improvement over its sept . 27 52 - week low of 15 . 78 . bmc software added 74 cents , or 5 . 8 % , to 13 . 60 .
a number of storage - products makers marked sharp improvements , after dain rauscher wessels insisted high - quality names in the sector would be able to realize earnings targets . mcdata , for example , rose 2 . 11 , or 26 % , to 10 . 15 , while qlogic shot up 5 . 89 , or 33 % , to 23 . 96 , both on the nasdaq .
several other sectors of the market , including those that have suffered most in the days since the attacks on sept . 11 , managed to mount recoveries . shares of delta air lines gained 2 . 27 , or 8 . 4 % , to 29 . 36 . continental airlines advanced 1 . 93 , or 11 % , to 19 . 32 . amr , the parent of american airlines , rose 1 . 45 , or 7 % , to 22 . 12 .
shares of several insurers moved higher on the prospects of higher rates . ace climbed 5 . 41 , or 19 % , to 34 . 31 . everest re added 5 . 24 , or 7 . 6 % , to 73 . 80 . xl capital advanced 5 . 05 , or 6 . 2 % , to 86 . 45 .
nortel networks wasn ' t punished for warnings that it would report a much wider loss in the third quarter than analysts had been anticipating . nevertheless , the stock finished 25 cents higher , up 4 . 7 % , at 5 . 54 .
l - 3 communications added 4 . 22 , or 4 . 7 % , to 93 . 60 , reaching a 52 - week high . the new york maker of defense communications products signed an agreement to acquire the canadian aviation - services provider spar aerospace .
sun microsystems moved up 99 cents , or 12 % , to 9 on the nasdaq . the palo alto , calif . , networking - products developer said it received a two - year , $ 100 million sourcing pact from news corp .
qwest communications , which slumped to a 52 - week low tuesday , gained 1 . 60 , or 10 % , to 17 . 20 . cibc world markets talked up the stock , citing its valuation .
eli lilly fell 3 . 62 , or 4 . 4 % , to 79 . 25 . the drug maker warned that sales of its blockbuster antidepressant prozac have eroded faster than expected after it lost its patent protection two months ago .
shares of several independent energy marketers moved higher , helped by comments from salomon smith barney , which said the recent selloff in the group left the stocks at attractive valuations . enron gained 2 . 88 , or 9 . 4 % , to 33 . 49 , dynegy added 1 . 66 , or 4 . 3 % , to 39 . 96 , and duke energy gained 37 cents , or 0 . 9 % , to 39 . 60 .
best buy rose 3 . 70 , or 9 . 2 % , to 48 . 80 in what proved a strong session for retail , after credit suisse first boston called the minneapolis retailer the best name in hardline consumer - electronics retailing .
shares of some real - estate - investment trusts weakened , following skeptical comments on earnings from ubs warburg . boston properties fell 1 . 48 , or 3 . 9 % , to 36 . 37 , simon property , indianapolis , eased 20 cents , or 0 . 7 % , to 26 . 90 , and apartment investment and management , denver , lost 1 . 56 , or 3 . 5 % , to 42 . 80 .
idec pharmaceuticals advanced 2 . 12 , or 4 . 1 % , to 53 . 74 , on upbeat comments dain rauscher made about the drug developer .
copyright ? 2000 dow jones power plant is still on market
by michael davis
copyright 2001 houston chronicle
british natural gas company bg group has struck a deal to buy enron corp . ' s offshore oil and natural gas properties in india for $ 388 million in cash , the companies said wednesday .
these properties are the last of the oil - and gas - producing properties houston - based enron retained after it spun off enron oil & gas , now named eog resources .
the deal marks another step for houston - based enron away from owning large physical assets . the company wants to focus on trading and making markets in a variety of commodities .
it is " another significant step for enron in selling assets not integrated into its wholesale or retail energy businesses , " the company said in a written statement .
enron ' s other assets for sale in india include the controversial dabhol power project , india ' s largest private power plant , in which enron holds a 65 percent controlling stake .
reports surfaced wednesday that enron might be willing to sell its stake in the $ 3 billion project at a discount . analysts have said for months now that enron would like to exit the project but has been unable to find a buyer willing to make the right offer . tata power co . , india ' s largest private electricity firm , has acknowledged that it has held preliminary talks over dabhol .
the oil and natural gas reserves sale includes a 30 percent stake in the tapti natural gas field and the panna / mukta oil and natural gas field 60 miles northwest of mumbai and a 62 . 6 percent interest in the offshore block cb - os / 1 exploration license . all are on the west coast of india .
production from the fields is about 70 million cubic feet of gas and 8 , 200 barrels of oil per day . reserves in the field are estimated to be 170 million barrels of oil equivalent . bg paid about $ 2 . 30 per barrel of oil equivalent .
the other partners in the tapti and panna / mukta offshore operations are oil and natural gas corp . , which holds 40 percent , and reliance industries , with a 30 percent stake . the other partners in the cb - os / 1 license are hindustan oil exploration co . , with 17 . 36 percent , tata petrodyne with 10 percent , and oil and natural gas corp . with 10 percent .
enron acquired its natural gas reserves in india with an eye to using them as fuel in the dabhol plant .
in august , houston - based enron said it and its other foreign partners were ready to sell their stakes in dabhol for no less than $ 1 billion , an amount estimated to be sufficient only to cover their costs and direct financial investment in the project .
dabhol has been facing problems for nearly a year over high tariffs and payment defaults by the maharashtra state electricity board , its sole customer . it was forced to shut down its 740 megawatt plant on india ' s west coast in june after the board stopped buying power .
john ambler , enron spokesman , would not comment specifically on any possible negotiations to sell the dabhol project , but said the company favors selling its stake .
" we continue to believe that the quickest and best approach for solving this issue is for the government of india and / or indian financial institutions to acquire the foreign stakeholders in the plant , " ambler said . " we are continuing to pursue the legal remedies available to us under the power purchase agreement and are seeking a recovery of our costs . "
the shutdown has stalled an expansion program that was almost complete and would have raised the generating capacity at the project to 2 , 184 megawatts .
other partners in dabhol include general electric and the bechtel construction firm , which each own 10 percent .
the remaining 15 percent is held by the maharashtra state electricity board , the nearly bankrupt power distribution monopoly in the state where the plant is located .
bg ' s existing interests in india include holdings in western indian natural gas distributors gujarat gas co . and mahanagar gas . the company is also working on a project to move liquefied natural gas from iran via pipeline into india .
india ' s gas demand is projected to grow by 50 percent over the next 10 years , while its gas production is declining .
edison rates to remain high under utility ' s deal with state
by karen gaudette
associated press writer
10 / 04 / 2001
associated press newswires
copyright 2001 . the associated press . all rights reserved .
san francisco ( ap ) - consumer advocates warn that southern california edison customers , already saddled with last spring ' s record rate increase until 2003 , could face even more rate hikes in the months ahead .
the deal secretly negotiated with the state public utilities commission this week settles a lawsuit filed by edison last november and is designed to keep the utility from following pacific gas and electric , the state ' s largest utility , into bankruptcy .
it lets edison pay off more than $ 3 billion of a $ 3 . 9 billion debt , in part by forcing ratepayers to continue paying higher rates imposed last may for at least the next two years .
consumer advocates , however , said wednesday that other consequences of the state ' s power crisis could send rates higher still .
the state ' s power - buying agency has yet to announce exactly how much money it needs from utility customers to repay the state for the billions of dollars it has spent buying electricity this year and to pay for about $ 43 billion of long - term power already contracted for delivery .
the prospect of continuing to pay higher rates and possibly enduring even more price hikes in the future dismayed some edison customers .
" we can ' t stay in business , " said william ho , general manager of top hat cleaners in west hollywood , where the monthly electric bill has gone from $ 600 before the state ' s energy crisis to nearly $ 1 , 200 . " we would have to raise prices , and we ' re already heading into a recession . "
ho said top hat has tried to cut back on electricity use by shutting off display lights in the windows . but he added , " you can ' t press clothes in the dark . "
it ' s unclear how much more money ratepayers will be called upon to contribute without knowing how much the state needs to pay billions of dollars in power - buying costs , said nettie hoge , executive director of the utility reform network , a san francisco - based consumer advocacy group .
hoge and other consumer advocates said this week ' s deal amounts to a ratepayer bailout of edison , which supported the state ' s failed deregulation plan .
" it ' s like saying i ' m not going to beat you any harder , so it shouldn ' t hurt , " she said .
john bryson , edison international president and chief executive officer , said the settlement would help the utility restore its good credit and repay its creditors .
edison owes nearly $ 4 billion to hundreds of power companies , ranging from energy marketing giant enron corp . to the state independent system operator , manager of the state ' s power grid .
" the agreement means stability , predictability , " he said during a conference call with reporters wednesday . " it means preserving and enhancing the infrastructure of electricity that makes the economy of our region work . "
the puc said the agreement would help the state begin pulling away from its role as a power - buyer . commission president loretta lynch said the agency had little choice in figuring a way to let edison repay its debts and avoid bankruptcy .
" i think that this is a balanced compromise , but clearly it does allow ratepayers to pay off some of the back debt , " she said .
the state department of water resources so far has spent $ 9 billion buying electricity for customers of edison , pacific gas and electric co . and san diego gas and electric co .
the shareholder - owned utilities suffered huge losses by being unable to pass along soaring wholesale power costs to their ratepayers . the state ' s 1996 deregulation law imposed a price cap on energy rates paid by customers .
that price cap was the focal point of edison ' s lawsuit against the puc , with the utility contending the state had no right to prevent the utility from passing the cost of energy to its customers .
under the deal struck this week , edison also must direct its available cash and an estimated $ 1 . 2 billion it would have issued in shareholder dividends toward paying its debt . the utility could be due refunds ordered by federal energy regulators , and that money also would have to help pay down the debt .
the agreement now goes before u . s . district court judge ronald s . w . lew in los angeles , who could rule on it this week .
" right now judge lew has his hands in the pockets of ratepayers . . . . will he pull out $ 3 . 3 billion for edison or will he protect the working men and women of california who can least afford to pay a superfluous bailout tax ? " said douglas heller of the santa monica - based foundation for taxpayer and consumer rights , which organized a protest rally wednesday outside the federal courthouse in los angeles .
heller estimated the settlement could cost edison ratepayers $ 750 each over the next four years .
- - -
on the net :
http : / / www . sce . com
http : / / www . cpuc . ca . gov
http : / / www . turn . org
copyright ? 2000 dow jones & company , inc . all rights reserved .
india press : enron unit defaults on interest payment
10 / 04 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones dow jones newswires ; 91 - 11 - 461 - 9426 ; himendra . kumar @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
business
bg pays enron pounds 263 m for indian oil and gas
our city staff
10 / 04 / 2001
the independent - london
foreign
21
( copyright 2001 independent newspapers ( uk ) limited )
bg is to buy enron ' s oil and gas assets off india ' s west coast for $ 388 m ( pounds 263 m ) in a move that will make the uk - based oil and gas producer the largest foreign investor in the country ' s upstream energy market .
the deal will add 5 per cent to bg ' s total output , with 19 , 000 barrels of oil equivalent a day , of which 60 per cent is gas . according to david mcmanus , bg ' s executive vice president , it will be earnings accretive from day one . " there is currently a deficit between the supply of gas , which is currently all indigenous gas , and the need for gas within india , " mr mcmanus said .
some analysts see demand doubling over the next 10 years , making india one of the world ' s fastest - growing energy markets .
the assets being sold by the us group enron include a 30 per cent stake in the tapti field and the panna mukta field north - west of bombay .
bg shares closed down 2 . 5 p at 261 p in a mixed oil sector after the news . mark redway , an analyst at teather & greenwood , said : " the logic is good and they ' re paying quite a low multiple at six or seven times last year ' s earnings , but [ after the 11 september attacks in the us ] there ' s a lot of investor nervousness at the moment over exposure to this part of the world . "
copyright ? 2000 dow jones & company , inc . all rights reserved .
india : bg india to buy enron ' s gas , oil assets
10 / 04 / 2001
business line ( the hindu )
fin . times info ltd - asia africa intel wire . business line ( the hindu ) copyright ( c ) 2001 kasturi & sons ltd . all rights res ' d
new delhi , oct . 3 . bg india has entered into a conditional agreement to acquire enron ' s offshore interests in the country for a consideration of $ 388 million .
the contract signed on tuesday night with enron oil and gas india ltd involves purchase of the latter ' s 30 per cent stake in the tapti gas field and the panna - mukta gas / oil fields besides the 62 . 64 per cent interest in the cb - os / 1 exploration block .
addressing a press conference here on wednesday , mr nigel shaw , bg india chief executive officer , said that the sale was contingent on the other stakeholders agreeing to bg as the operator of the exploration fields .
the rider of approval from other stakeholders comes in the backdrop of oil and natural gas corporation ( ongc ) , a 40 per cent stakeholder in the panna - mukta , tapti fields , besides a 10 per cent stake in the cb - os / 1 exploration block , seeking operatorship of the fields .
when contacted , the ongc chairman , mr subir raha , said , " ongc ' s position remains unchanged and it is still pressing for operatorship of the fields . we are currently in talks with bg on the issue . "
" we are in talks with the government as well as ongc on the issue . we are not contemplating a situation when operatorship is denied , "
mr shaw replied when queried on the issue . he stressed that in case the other parties do not agree , the deal will fall through . " we will walk away in such an event , " he said .
on the legality of ongc ' s claim , mr shaw said , " under the agreement , at the point of change of control ( from enron to bg ) , the other stakeholders can object to the transfer of operatorship ( to bg ) . however , the contract is not clear on the deadlock . "
mr shaw was hopeful that the transfer of shares would take place by the end of the month .
currently , in the tapti and panna - mukta gas fields , reliance industries ltd holds 30 per cent stake while ongc holds 40 per cent equity . in the case of the cb - os / 1 exploration field , hindustan oil and exploration company holds 17 . 36 per cent , tata petrodyne 10 per cent and ongc 10 per cent .
the bg vision : bg plans to double the gas production capacity of the tapti gas fields by 2004 , according to mr shaw . though not willing to reveal the quantum of investment in the future , he said that bg would be committed to its share in the expansion of the fields besides the exploration efforts on cb - os / 1 field where three wells are scheduled to be drilled in december .
" there is opportunity for significant investment in the fields and one of the frustrations has been the lack of this . "
bg will be honouring the present gas sale agreement with gas authority of india ltd ( gail ) which involves sale of gas at base load level for the life of the asset ( exploration field ) . however , the venture will be free to find new markets for sale of any incremental gas recovered from the fields . currently , the fields yield 70 million standard cu . feet of gas per day and 8 , 200 barrels of oil per day .
bg has a 50 per cent stake in mahanagar gas ltd , a gas supply company in mumbai . further , it is in the process of setting up an lng regassification terminal in pipavav .
bg is not interested in buying out enron ' s upcoming lng regassification facility at dabhol since it is setting up its own lng regassification terminal at pipavav , gujarat , mr shaw said .
mr shaw said that given the vast market potential and the dwindling recovery from the domestic fields , there would not be any conflict of interest between the gas sold from the lng terminal and that from the exploration fields .
on the pricing front , the tapti and panna - mukta fields enjoy a fixed price contract till 2004 . beyond this period , the pricing is internationally linked .
once the deal is completed , bg india plans to initiate talks with reliance industries ltd ( ril ) and ongc to second their personnel at the operating level of the exploration venture , according to mr shaw .
further , it would minimise the involvement of its parent company in london as well as keep the number of expatriates in the joint ventures to a minimum .
bg has so far invested $ 150 million in its ventures in the country .
- our bureau
copyright ? 2000 dow jones & company , inc . all rights reserved .
oct . 4 , 2001
houston chronicle
former enron executive to head homeland security
copyright 2001 houston chronicle
army secretary thomas white , a former houston energy executive , has been picked to serve as the defense department ' s top official for homeland security .
white will work closely with pennsylvania gov . tom ridge , who was named by president bush in the wake of the sept . 11 attacks to head a new cabinet - level office of homeland security .
the new office will coordinate the efforts of more than 40 government agencies in tightening domestic security and rooting out terrorist threats .
white was named to serve as the pentagon ' s liaison by secretary of defense donald rumsfeld on tuesday .
white is a retired army brigadier general who became the army ' s top civilian executive in may . before he was nominated for the army post by bush , white was vice chairman of houston - based enron energy services .
" in the wake of the terrorist attacks of sept . 11 , homeland security has emerged as a paramount national priority , " white said . " as the department of defense executive agent for homeland security , i look forward to working closely with gov . tom ridge as he leads this vital effort . "
a 23 - year veteran of the army , white served as executive assistant to gen . colin powell while powell headed the joint chiefs of staff under former president bush . powell currently is secretary of state .
british gas to buy enron ' s oil , gas assets for $ 388 m
our corporate bureau new delhi
10 / 04 / 2001
business standard
1
copyright ( c ) business standard
british gas india today announced that it has reached an agreement to buy the assets of enron oil & gas india ltd for $ 388 million . the assets include a 30 per cent interest in the tapti gas field and the panna / mukta oil and gas fields as well as a 62 . 64 per cent interest in a licence to explore the cb - os / 1 block . all three are located on the west coast of india and are operated by enron .
however , british gas india chief executive officer nigel shaw said the deal is subject to the condition that british gas gets operational control of the fields . " if we are not the operator , we will walk away from the deal , " he said . the deal , signed in london last night , would require clearance from the indian government . shaw revealed that british gas india has already initiated a dialogue with the government for this .
but the deal seems to have run into a roadblock even before the ink on it has dried . the state - owned oil & natural gas corporation ( ongc ) which has a 40 per cent interest in the fields is expected to try for the operatorship of the oil and gas fields which were earlier operated by enron oil & gas .
however , petroleum minister ram naik said " all issues will be sorted out in due course " . " enron today wrote to me to go ahead with the deal . we will examine the issue , " he said .
according to oil industry sources , the operatorship is based on a consensus _ and not on the percentage of shares held _ among shareholders . the proposed sale of enron ' s assets does not " mean an automatic transfer of operatorship and the shareholders will have to come to a consensus , " ongc sources claim .
what is more , ongc had earlier unsuccessfully bid $ 350 million for enron ' s oil and gas assets . ongc has the first right of refusal , according to an ongc official . ongc chairman s raha was unavailable for comment .
shaw admitted that the contract between the three existing partners does not lay down the course of action in case a deadlock emerges on the issue of operating the oil and gas fields .
" we are in active discussion with both ongc and reliance . we are hopeful of wrapping it up by the end of this month , " shaw said .
an ongc official , however , said the state - owned company was aware of the development but had not been informed officially by enron .
shaw also disclosed that british gas was willing to make further investments to ramp up production at the tapti and the panna / mukta fields .
" further investments have not happened as the partners could not agree . we are looking at the possibility of doubling production by 2004 , " he said .
when asked what would be the investment required for such an exercise , shaw said that it would run into hundreds of millions of dollars .
the three oil and gas fields together produce around 300 million cubic meters of gas and 29 , 000 barrels of oil a day .
an enron spokesman refused to comment on the issue of operatorship as did a reliance spokesman .
enron oil & gas has 30 per cent interest in the tapti gas and panna / mukta oil and gas field , ongc has a 40 per cent interest and reliance has the remaining 30 per cent .
in the case of cb - os / 1 , the other partners are hindustan oil exploration company with 17 . 36 per cent and tata petrodyne and ongc with 10 per cent each .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron mentions
companies : bg group buys assets in india from enron - - - u . k . company extends reach at a bargain price
the wall street journal europe , 10 / 04 / 01
world watch
the wall street journal , 10 / 04 / 01
world business briefing europe : britain : petroleum purchase
the new york times , 10 / 04 / 01
companies & finance uk - bg to expand assets in india .
financial times ( u . k . edition ) , 10 / 04 / 01
cisco , extreme networks surge as technology stocks lead rally
the wall street journal , 10 / 04 / 01
enron to sell assets in oil , gas off india
houston chronicle , 10 / 04 / 01
edison rates to remain high under utility ' s deal with state
associated press newswires , 10 / 04 / 01
india press : enron unit defaults on interest payment
dow jones international news , 10 / 04 / 01
bg pays enron pounds 263 m for indian oil and gas
the independent - london , 10 / 04 / 01
india : bg india to buy enron ' s gas , oil assets
business line ( the hindu ) , 10 / 04 / 01
former enron executive to head homeland security
houston chronicle , 10 / 04 / 01
british gas to buy enron ' s oil , gas assets for $ 388 m
business standard , 10 / 04 / 01
companies : bg group buys assets in india from enron - - - u . k . company extends reach at a bargain price
by michael wang and sri jegarajah
dow jones newswires
10 / 04 / 2001
the wall street journal europe
5
( copyright ( c ) 2001 , dow jones & company , inc . )
london - - bg group plc extended its reach in the indian subcontinent and expanded its exploration and production portfolio with the purchase of the offshore indian assets of u . s . energy group enron corp . for $ 388 million ( 422 million euros ) .
analysts applauded the purchase by the u . k . oil and gas company , saying it is acquiring some promising assets inexpensively . the price works out to less than $ 2 . 30 per barrel of oil equivalent , given the proven and probable reserves of more than 170 million barrels of oil equivalent of enron oil & gas india ltd . " we value other indian oil and gas reserves at $ 2 . 90 ( assuming an oil price of $ 18 ) , so bg appears to have paid a good price , " said abn amro in a research note .
a bombay - based energy analyst reckoned enron " probably undersold , " noting that earlier this year indian state - owned oil & natural gas corp . , a partner of enron ' s indian unit , had its $ 400 million offer for the assets rejected .
enron has experienced mixed success as an integrated energy operator in india , and is attempting to exit the controversial dabhol power project , india ' s largest private power plant , in which it has a 65 % controlling stake .
the indian unit ' s assets comprise a 30 % stake in the tapti gas field and the panna / mukta oil and gas field , and a 62 . 64 % interest in the cb - os / 1 exploration license in the gulf of cambay off western india . the enron unit is the designated operator of these developments .
equity production from the fields amounts to 20 , 000 barrels of oil equivalent a day , representing about 6 % to 7 % of bg ' s total output . for the year ended march 31 , enron ' s indian unit posted pro forma profit after tax of $ 60 million on revenue of $ 160 million .
the acquisition complements bg ' s fledgling refining and marketing interests in india , which include holdings in western indian distributors gujarat gas co . ( 65 % ) and mahanagar gas ( 50 % ) . it is also the driving force behind a project to pipe liquefied natural gas from iran to tap india ' s growing appetite for gas .
copyright ? 2000 dow jones & company , inc . all rights reserved .
international
world watch
compiled by david i . oyama
10 / 04 / 2001
the wall street journal
al 7
( copyright ( c ) 2001 , dow jones & company , inc . )
bg to buy enron assets offshore india
british oil and natural - gas company bg group agreed to acquire the offshore indian assets of u . s . energy company enron for $ 388 million . the purchase of enron oil & gas india , with proven and probable reserves of more than 170 million barrels of oil equivalent , is valued at about $ 2 . 30 a barrel , a bargain by international standards , analysts said . enron has had mixed success as an integrated energy company in india , and is attempting to unwind its 65 % stake in dabhol power , india ' s largest private - sector power plant .
copyright ? 2000 dow jones section w
world business briefing europe : britain : petroleum purchase
by suzanne kapner ( nyt )
10 / 04 / 2001
the new york times
page 1 , column 4
c . 2001 new york times company
the bg group of britain agreed to buy the oil and natural gas fields of enron in india for $ 388 million . the operations include a 30 percent stake in the tapti gas field and the panna / mukhta oil and gas fields , plus 63 percent of an untapped deposit on the country ' s west coast . bg said the assets held more than 170 million barrels of oil and gas . they do not include enron ' s dabhol power project , which has been entangled in a nine - month payment dispute with the maharashtra state electricity board . enron is looking to sell its 64 percent stake in the project for $ 1 . 2 billion to cover the cost of its investment . tata power and bses , both of india , have indicated an interest , people close to the talks said . suzanne kapner ( nyt )
copyright ? 2000 dow jones & company , inc . all rights reserved .
companies & finance uk - bg to expand assets in india .
by matthew jones .
10 / 04 / 2001
financial times ( u . k . edition )
( c ) 2001 financial times limited . all rights reserved
bg , the gas and oil group , has stepped up its efforts to develop india into one of its core markets with the $ 388 m ( # 262 m ) purchase of assets owned by enron , the us energy and trading group .
the deal is the latest sign of enron ' s retreat from the region , and comes as the group is separately attempting to withdraw from the $ 2 . 8 bn dabhol power plant following a payment dispute with maharashtra state .
bg is placing particular emphasis on developing markets .
it has operated in india for 10 years but has so far concentrated on gas distribution through a 65 per cent interest in gujarat gas company and a joint venture with the gas authority of india in mumbai .
david mcmanus , bg executive vice - president responsible for eastern hemisphere business , said the transaction would give it the opportunity to develop the indian gas market . the company has a view to creating demand for imported liquefied natural gas through bg ' s planned pipavav lng terminal in gujarat .
" india has the second fastest - growing gas market after china and we see it as a core place to use our expertise , " he said .
the agreement is subject to confirmation from enron ' s partners that bg will be able to take over operating the fields , and consent from the indian government .
analysts said the acquisition was a logical next step for bg and appeared good value against market expectations of a $ 600 m price for the assets .
iain reid of ubs warburg said : " either bg are extremely good negotiators or there is an element of risk attached to the speed at which production can be increased . "
( c ) copyright financial times ltd . all rights reserved .
http : / / www . ft . com .
copyright ? 2000 dow jones & company , inc . all rights reserved .
abreast of the market
cisco , extreme networks surge as technology stocks lead rally
by robert o ' brien
dow jones newswires
10 / 04 / 2001
the wall street journal
c 2
( copyright ( c ) 2001 , dow jones the industrial average ended at 9123 . 78 .
" there was a real nice tone to the market today , " said pat davis , head of nasdaq trading at ubs warburg , said . " but i don ' t think you can say we ' ve heard all the bad news we ' re going to hear .
over the past three weeks , wall street analysts had been systematically reducing their earnings projections to better reflect the deterioration in economic conditions . only over the past several days had they begun to focus on valuations , saying that , in some instances , stock prices looked attractive , even projecting weaker earnings .
lehman brothers , for example , jumped to the defense of some software names , and a number of those marked improvement . shares of peoplesoft gained 3 . 14 , or 15 % , to 23 . 68 on the nasdaq , a 50 % improvement over its sept . 27 52 - week low of 15 . 78 . bmc software added 74 cents , or 5 . 8 % , to 13 . 60 .
a number of storage - products makers marked sharp improvements , after dain rauscher wessels insisted high - quality names in the sector would be able to realize earnings targets . mcdata , for example , rose 2 . 11 , or 26 % , to 10 . 15 , while qlogic shot up 5 . 89 , or 33 % , to 23 . 96 , both on the nasdaq .
several other sectors of the market , including those that have suffered most in the days since the attacks on sept . 11 , managed to mount recoveries . shares of delta air lines gained 2 . 27 , or 8 . 4 % , to 29 . 36 . continental airlines advanced 1 . 93 , or 11 % , to 19 . 32 . amr , the parent of american airlines , rose 1 . 45 , or 7 % , to 22 . 12 .
shares of several insurers moved higher on the prospects of higher rates . ace climbed 5 . 41 , or 19 % , to 34 . 31 . everest re added 5 . 24 , or 7 . 6 % , to 73 . 80 . xl capital advanced 5 . 05 , or 6 . 2 % , to 86 . 45 .
nortel networks wasn ' t punished for warnings that it would report a much wider loss in the third quarter than analysts had been anticipating . nevertheless , the stock finished 25 cents higher , up 4 . 7 % , at 5 . 54 .
l - 3 communications added 4 . 22 , or 4 . 7 % , to 93 . 60 , reaching a 52 - week high . the new york maker of defense communications products signed an agreement to acquire the canadian aviation - services provider spar aerospace .
sun microsystems moved up 99 cents , or 12 % , to 9 on the nasdaq . the palo alto , calif . , networking - products developer said it received a two - year , $ 100 million sourcing pact from news corp .
qwest communications , which slumped to a 52 - week low tuesday , gained 1 . 60 , or 10 % , to 17 . 20 . cibc world markets talked up the stock , citing its valuation .
eli lilly fell 3 . 62 , or 4 . 4 % , to 79 . 25 . the drug maker warned that sales of its blockbuster antidepressant prozac have eroded faster than expected after it lost its patent protection two months ago .
shares of several independent energy marketers moved higher , helped by comments from salomon smith barney , which said the recent selloff in the group left the stocks at attractive valuations . enron gained 2 . 88 , or 9 . 4 % , to 33 . 49 , dynegy added 1 . 66 , or 4 . 3 % , to 39 . 96 , and duke energy gained 37 cents , or 0 . 9 % , to 39 . 60 .
best buy rose 3 . 70 , or 9 . 2 % , to 48 . 80 in what proved a strong session for retail , after credit suisse first boston called the minneapolis retailer the best name in hardline consumer - electronics retailing .
shares of some real - estate - investment trusts weakened , following skeptical comments on earnings from ubs warburg . boston properties fell 1 . 48 , or 3 . 9 % , to 36 . 37 , simon property , indianapolis , eased 20 cents , or 0 . 7 % , to 26 . 90 , and apartment investment and management , denver , lost 1 . 56 , or 3 . 5 % , to 42 . 80 .
idec pharmaceuticals advanced 2 . 12 , or 4 . 1 % , to 53 . 74 , on upbeat comments dain rauscher made about the drug developer .
copyright ? 2000 dow jones power plant is still on market
by michael davis
copyright 2001 houston chronicle
british natural gas company bg group has struck a deal to buy enron corp . ' s offshore oil and natural gas properties in india for $ 388 million in cash , the companies said wednesday .
these properties are the last of the oil - and gas - producing properties houston - based enron retained after it spun off enron oil & gas , now named eog resources .
the deal marks another step for houston - based enron away from owning large physical assets . the company wants to focus on trading and making markets in a variety of commodities .
it is " another significant step for enron in selling assets not integrated into its wholesale or retail energy businesses , " the company said in a written statement .
enron ' s other assets for sale in india include the controversial dabhol power project , india ' s largest private power plant , in which enron holds a 65 percent controlling stake .
reports surfaced wednesday that enron might be willing to sell its stake in the $ 3 billion project at a discount . analysts have said for months now that enron would like to exit the project but has been unable to find a buyer willing to make the right offer . tata power co . , india ' s largest private electricity firm , has acknowledged that it has held preliminary talks over dabhol .
the oil and natural gas reserves sale includes a 30 percent stake in the tapti natural gas field and the panna / mukta oil and natural gas field 60 miles northwest of mumbai and a 62 . 6 percent interest in the offshore block cb - os / 1 exploration license . all are on the west coast of india .
production from the fields is about 70 million cubic feet of gas and 8 , 200 barrels of oil per day . reserves in the field are estimated to be 170 million barrels of oil equivalent . bg paid about $ 2 . 30 per barrel of oil equivalent .
the other partners in the tapti and panna / mukta offshore operations are oil and natural gas corp . , which holds 40 percent , and reliance industries , with a 30 percent stake . the other partners in the cb - os / 1 license are hindustan oil exploration co . , with 17 . 36 percent , tata petrodyne with 10 percent , and oil and natural gas corp . with 10 percent .
enron acquired its natural gas reserves in india with an eye to using them as fuel in the dabhol plant .
in august , houston - based enron said it and its other foreign partners were ready to sell their stakes in dabhol for no less than $ 1 billion , an amount estimated to be sufficient only to cover their costs and direct financial investment in the project .
dabhol has been facing problems for nearly a year over high tariffs and payment defaults by the maharashtra state electricity board , its sole customer . it was forced to shut down its 740 megawatt plant on india ' s west coast in june after the board stopped buying power .
john ambler , enron spokesman , would not comment specifically on any possible negotiations to sell the dabhol project , but said the company favors selling its stake .
" we continue to believe that the quickest and best approach for solving this issue is for the government of india and / or indian financial institutions to acquire the foreign stakeholders in the plant , " ambler said . " we are continuing to pursue the legal remedies available to us under the power purchase agreement and are seeking a recovery of our costs . "
the shutdown has stalled an expansion program that was almost complete and would have raised the generating capacity at the project to 2 , 184 megawatts .
other partners in dabhol include general electric and the bechtel construction firm , which each own 10 percent .
the remaining 15 percent is held by the maharashtra state electricity board , the nearly bankrupt power distribution monopoly in the state where the plant is located .
bg ' s existing interests in india include holdings in western indian natural gas distributors gujarat gas co . and mahanagar gas . the company is also working on a project to move liquefied natural gas from iran via pipeline into india .
india ' s gas demand is projected to grow by 50 percent over the next 10 years , while its gas production is declining .
edison rates to remain high under utility ' s deal with state
by karen gaudette
associated press writer
10 / 04 / 2001
associated press newswires
copyright 2001 . the associated press . all rights reserved .
san francisco ( ap ) - consumer advocates warn that southern california edison customers , already saddled with last spring ' s record rate increase until 2003 , could face even more rate hikes in the months ahead .
the deal secretly negotiated with the state public utilities commission this week settles a lawsuit filed by edison last november and is designed to keep the utility from following pacific gas and electric , the state ' s largest utility , into bankruptcy .
it lets edison pay off more than $ 3 billion of a $ 3 . 9 billion debt , in part by forcing ratepayers to continue paying higher rates imposed last may for at least the next two years .
consumer advocates , however , said wednesday that other consequences of the state ' s power crisis could send rates higher still .
the state ' s power - buying agency has yet to announce exactly how much money it needs from utility customers to repay the state for the billions of dollars it has spent buying electricity this year and to pay for about $ 43 billion of long - term power already contracted for delivery .
the prospect of continuing to pay higher rates and possibly enduring even more price hikes in the future dismayed some edison customers .
" we can ' t stay in business , " said william ho , general manager of top hat cleaners in west hollywood , where the monthly electric bill has gone from $ 600 before the state ' s energy crisis to nearly $ 1 , 200 . " we would have to raise prices , and we ' re already heading into a recession . "
ho said top hat has tried to cut back on electricity use by shutting off display lights in the windows . but he added , " you can ' t press clothes in the dark . "
it ' s unclear how much more money ratepayers will be called upon to contribute without knowing how much the state needs to pay billions of dollars in power - buying costs , said nettie hoge , executive director of the utility reform network , a san francisco - based consumer advocacy group .
hoge and other consumer advocates said this week ' s deal amounts to a ratepayer bailout of edison , which supported the state ' s failed deregulation plan .
" it ' s like saying i ' m not going to beat you any harder , so it shouldn ' t hurt , " she said .
john bryson , edison international president and chief executive officer , said the settlement would help the utility restore its good credit and repay its creditors .
edison owes nearly $ 4 billion to hundreds of power companies , ranging from energy marketing giant enron corp . to the state independent system operator , manager of the state ' s power grid .
" the agreement means stability , predictability , " he said during a conference call with reporters wednesday . " it means preserving and enhancing the infrastructure of electricity that makes the economy of our region work . "
the puc said the agreement would help the state begin pulling away from its role as a power - buyer . commission president loretta lynch said the agency had little choice in figuring a way to let edison repay its debts and avoid bankruptcy .
" i think that this is a balanced compromise , but clearly it does allow ratepayers to pay off some of the back debt , " she said .
the state department of water resources so far has spent $ 9 billion buying electricity for customers of edison , pacific gas and electric co . and san diego gas and electric co .
the shareholder - owned utilities suffered huge losses by being unable to pass along soaring wholesale power costs to their ratepayers . the state ' s 1996 deregulation law imposed a price cap on energy rates paid by customers .
that price cap was the focal point of edison ' s lawsuit against the puc , with the utility contending the state had no right to prevent the utility from passing the cost of energy to its customers .
under the deal struck this week , edison also must direct its available cash and an estimated $ 1 . 2 billion it would have issued in shareholder dividends toward paying its debt . the utility could be due refunds ordered by federal energy regulators , and that money also would have to help pay down the debt .
the agreement now goes before u . s . district court judge ronald s . w . lew in los angeles , who could rule on it this week .
" right now judge lew has his hands in the pockets of ratepayers . . . . will he pull out $ 3 . 3 billion for edison or will he protect the working men and women of california who can least afford to pay a superfluous bailout tax ? " said douglas heller of the santa monica - based foundation for taxpayer and consumer rights , which organized a protest rally wednesday outside the federal courthouse in los angeles .
heller estimated the settlement could cost edison ratepayers $ 750 each over the next four years .
- - -
on the net :
http : / / www . sce . com
http : / / www . cpuc . ca . gov
http : / / www . turn . org
copyright ? 2000 dow jones & company , inc . all rights reserved .
india press : enron unit defaults on interest payment
10 / 04 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones dow jones newswires ; 91 - 11 - 461 - 9426 ; himendra . kumar @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
business
bg pays enron pounds 263 m for indian oil and gas
our city staff
10 / 04 / 2001
the independent - london
foreign
21
( copyright 2001 independent newspapers ( uk ) limited )
bg is to buy enron ' s oil and gas assets off india ' s west coast for $ 388 m ( pounds 263 m ) in a move that will make the uk - based oil and gas producer the largest foreign investor in the country ' s upstream energy market .
the deal will add 5 per cent to bg ' s total output , with 19 , 000 barrels of oil equivalent a day , of which 60 per cent is gas . according to david mcmanus , bg ' s executive vice president , it will be earnings accretive from day one . " there is currently a deficit between the supply of gas , which is currently all indigenous gas , and the need for gas within india , " mr mcmanus said .
some analysts see demand doubling over the next 10 years , making india one of the world ' s fastest - growing energy markets .
the assets being sold by the us group enron include a 30 per cent stake in the tapti field and the panna mukta field north - west of bombay .
bg shares closed down 2 . 5 p at 261 p in a mixed oil sector after the news . mark redway , an analyst at teather & greenwood , said : " the logic is good and they ' re paying quite a low multiple at six or seven times last year ' s earnings , but [ after the 11 september attacks in the us ] there ' s a lot of investor nervousness at the moment over exposure to this part of the world . "
copyright ? 2000 dow jones & company , inc . all rights reserved .
india : bg india to buy enron ' s gas , oil assets
10 / 04 / 2001
business line ( the hindu )
fin . times info ltd - asia africa intel wire . business line ( the hindu ) copyright ( c ) 2001 kasturi & sons ltd . all rights res ' d
new delhi , oct . 3 . bg india has entered into a conditional agreement to acquire enron ' s offshore interests in the country for a consideration of $ 388 million .
the contract signed on tuesday night with enron oil and gas india ltd involves purchase of the latter ' s 30 per cent stake in the tapti gas field and the panna - mukta gas / oil fields besides the 62 . 64 per cent interest in the cb - os / 1 exploration block .
addressing a press conference here on wednesday , mr nigel shaw , bg india chief executive officer , said that the sale was contingent on the other stakeholders agreeing to bg as the operator of the exploration fields .
the rider of approval from other stakeholders comes in the backdrop of oil and natural gas corporation ( ongc ) , a 40 per cent stakeholder in the panna - mukta , tapti fields , besides a 10 per cent stake in the cb - os / 1 exploration block , seeking operatorship of the fields .
when contacted , the ongc chairman , mr subir raha , said , " ongc ' s position remains unchanged and it is still pressing for operatorship of the fields . we are currently in talks with bg on the issue . "
" we are in talks with the government as well as ongc on the issue . we are not contemplating a situation when operatorship is denied , "
mr shaw replied when queried on the issue . he stressed that in case the other parties do not agree , the deal will fall through . " we will walk away in such an event , " he said .
on the legality of ongc ' s claim , mr shaw said , " under the agreement , at the point of change of control ( from enron to bg ) , the other stakeholders can object to the transfer of operatorship ( to bg ) . however , the contract is not clear on the deadlock . "
mr shaw was hopeful that the transfer of shares would take place by the end of the month .
currently , in the tapti and panna - mukta gas fields , reliance industries ltd holds 30 per cent stake while ongc holds 40 per cent equity . in the case of the cb - os / 1 exploration field , hindustan oil and exploration company holds 17 . 36 per cent , tata petrodyne 10 per cent and ongc 10 per cent .
the bg vision : bg plans to double the gas production capacity of the tapti gas fields by 2004 , according to mr shaw . though not willing to reveal the quantum of investment in the future , he said that bg would be committed to its share in the expansion of the fields besides the exploration efforts on cb - os / 1 field where three wells are scheduled to be drilled in december .
" there is opportunity for significant investment in the fields and one of the frustrations has been the lack of this . "
bg will be honouring the present gas sale agreement with gas authority of india ltd ( gail ) which involves sale of gas at base load level for the life of the asset ( exploration field ) . however , the venture will be free to find new markets for sale of any incremental gas recovered from the fields . currently , the fields yield 70 million standard cu . feet of gas per day and 8 , 200 barrels of oil per day .
bg has a 50 per cent stake in mahanagar gas ltd , a gas supply company in mumbai . further , it is in the process of setting up an lng regassification terminal in pipavav .
bg is not interested in buying out enron ' s upcoming lng regassification facility at dabhol since it is setting up its own lng regassification terminal at pipavav , gujarat , mr shaw said .
mr shaw said that given the vast market potential and the dwindling recovery from the domestic fields , there would not be any conflict of interest between the gas sold from the lng terminal and that from the exploration fields .
on the pricing front , the tapti and panna - mukta fields enjoy a fixed price contract till 2004 . beyond this period , the pricing is internationally linked .
once the deal is completed , bg india plans to initiate talks with reliance industries ltd ( ril ) and ongc to second their personnel at the operating level of the exploration venture , according to mr shaw .
further , it would minimise the involvement of its parent company in london as well as keep the number of expatriates in the joint ventures to a minimum .
bg has so far invested $ 150 million in its ventures in the country .
- our bureau
copyright ? 2000 dow jones & company , inc . all rights reserved .
oct . 4 , 2001
houston chronicle
former enron executive to head homeland security
copyright 2001 houston chronicle
army secretary thomas white , a former houston energy executive , has been picked to serve as the defense department ' s top official for homeland security .
white will work closely with pennsylvania gov . tom ridge , who was named by president bush in the wake of the sept . 11 attacks to head a new cabinet - level office of homeland security .
the new office will coordinate the efforts of more than 40 government agencies in tightening domestic security and rooting out terrorist threats .
white was named to serve as the pentagon ' s liaison by secretary of defense donald rumsfeld on tuesday .
white is a retired army brigadier general who became the army ' s top civilian executive in may . before he was nominated for the army post by bush , white was vice chairman of houston - based enron energy services .
" in the wake of the terrorist attacks of sept . 11 , homeland security has emerged as a paramount national priority , " white said . " as the department of defense executive agent for homeland security , i look forward to working closely with gov . tom ridge as he leads this vital effort . "
a 23 - year veteran of the army , white served as executive assistant to gen . colin powell while powell headed the joint chiefs of staff under former president bush . powell currently is secretary of state .
british gas to buy enron ' s oil , gas assets for $ 388 m
our corporate bureau new delhi
10 / 04 / 2001
business standard
1
copyright ( c ) business standard
british gas india today announced that it has reached an agreement to buy the assets of enron oil & gas india ltd for $ 388 million . the assets include a 30 per cent interest in the tapti gas field and the panna / mukta oil and gas fields as well as a 62 . 64 per cent interest in a licence to explore the cb - os / 1 block . all three are located on the west coast of india and are operated by enron .
however , british gas india chief executive officer nigel shaw said the deal is subject to the condition that british gas gets operational control of the fields . " if we are not the operator , we will walk away from the deal , " he said . the deal , signed in london last night , would require clearance from the indian government . shaw revealed that british gas india has already initiated a dialogue with the government for this .
but the deal seems to have run into a roadblock even before the ink on it has dried . the state - owned oil & natural gas corporation ( ongc ) which has a 40 per cent interest in the fields is expected to try for the operatorship of the oil and gas fields which were earlier operated by enron oil & gas .
however , petroleum minister ram naik said " all issues will be sorted out in due course " . " enron today wrote to me to go ahead with the deal . we will examine the issue , " he said .
according to oil industry sources , the operatorship is based on a consensus _ and not on the percentage of shares held _ among shareholders . the proposed sale of enron ' s assets does not " mean an automatic transfer of operatorship and the shareholders will have to come to a consensus , " ongc sources claim .
what is more , ongc had earlier unsuccessfully bid $ 350 million for enron ' s oil and gas assets . ongc has the first right of refusal , according to an ongc official . ongc chairman s raha was unavailable for comment .
shaw admitted that the contract between the three existing partners does not lay down the course of action in case a deadlock emerges on the issue of operating the oil and gas fields .
" we are in active discussion with both ongc and reliance . we are hopeful of wrapping it up by the end of this month , " shaw said .
an ongc official , however , said the state - owned company was aware of the development but had not been informed officially by enron .
shaw also disclosed that british gas was willing to make further investments to ramp up production at the tapti and the panna / mukta fields .
" further investments have not happened as the partners could not agree . we are looking at the possibility of doubling production by 2004 , " he said .
when asked what would be the investment required for such an exercise , shaw said that it would run into hundreds of millions of dollars .
the three oil and gas fields together produce around 300 million cubic meters of gas and 29 , 000 barrels of oil a day .
an enron spokesman refused to comment on the issue of operatorship as did a reliance spokesman .
enron oil & gas has 30 per cent interest in the tapti gas and panna / mukta oil and gas field , ongc has a 40 per cent interest and reliance has the remaining 30 per cent .
in the case of cb - os / 1 , the other partners are hindustan oil exploration company with 17 . 36 per cent and tata petrodyne and ongc with 10 per cent each .
copyright ? 2000 dow jones & company , inc . all rights reserved .