BG Group plc has announced a revised agreement to purchase the entire share capital of Enron Oil & Gas India Limited (EOGIL) for US$350 million from Enron Corp.
On October 3, 2001, BG Group announced that it would pay US$388 million for EOGIL. Progress to close the transaction was slower than anticipated and further complicated by Enron's recent Chapter 11 Bankruptcy Protection Filing in the USA. The original Sale and Purchase Agreement expired in December 2001 but has been re-negotiated to take account of Enron's current position.
The revised agreement has been reviewed by Enron's Creditors' Committee and is subject to a number of conditions including the approval of the Bankruptcy Court. Enron is expected to file a motion with the Court shortly seeking such approval. Completion of the transaction is expected to occur by mid-February.
Frank Chapman, Chief Executive, BG Group plc, said: "This revised agreement secures strong producing fields at a price that is attractive to both BG Group's shareholders and Enron's creditors. These assets are important to the Group's long-term strategy for India and will enable us to build a material gas position in the country."
Discussions with joint venture partners on operatorship of the assets are ongoing. This is not, however, a condition of the revised agreement.