Business
BG group foresees India as a core asset
LONDON
JAN. 29.
BG Group Plc has said it plans to develop India as one of its biggest sources and markets for natural gas after completing its $350 million buyout of Enron Oil and Gas India Ltd.
BG, an international natural gas company, expects to get final approval for the deal by the middle of next month from U.S. authorities overseeing the bankruptcy of Enron Corp.
"The whole acquisition crystalises India as a new BG group core business area,'' said BG spokeswoman, Nicole Mcmahon.
Although BG had originally agreed to the deal in October, it drove down the acquisition price by 10 per cent from $388 million when it renegotiated the final, revised contract.
Enron's filing for bankruptcy protection in December 2 complicated the buyout but resulted in BG's getting a strategic asset for "an attractive price,'' Ms. Mcmahon said.
BG agreed last week to buy Enron's 30 per cent interests in the Tapti gas field and the Panna-Mukta oil and gas field in the western coast of India. It also secured Enron's 63 per cent interest in an exploration licence in the same region. Enron's unfinished — and troubled — Dabhol power project in Maharashtra was not part of the acquisition. — AP
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