Enron to sell Mukta, Panna stake

Enron to sell Mukta, Panna stake
PRESS TRUST OF INDIA

NOV 19: ``Enron has appointed Credit Suisse First Boston as consultants to derive current value of its stake in the joint venture,'' industry sources told PTI here today.

``The bids will be immediately called for, once the report is submitted in late March next year,'' sources said.

When contacted, EOGIL spokesman declined to comment on the offer whether Enron would sell its entire equity in the US $900 million ventures to either of its erstwhile partners Reliance Industries Ltd (RIL) or Oil and Natural Gas Corporation (ONGC), who hold 30 per cent and 40 per cent stake respectively.

After EOGIL announced its withdrawal from gas and oil operations in the country on October 18, both RIL and ONGC evinced interest in picking up the stake, which would result in a rise of their stake in the venture.

According to sources, the Ambanis have been eyeing Enron's stake over two years and recently during RIL's half quarterly review meet on October 31, managing director Anil Ambani had clearly mentioned that if Enron would invite competitive bids, ``it was natural for RIL to participate in it.''

In fact, ONGC chairman Bikash Bora had also sent feelers to the government for picking up the 30 per cent stake. ``We are interested in picking up Enron's stake..and are exploring possibilities of acquiring the entire equity,'' he said.

Bora had said ONGC would knock on the government's door, need be, for taking the controlling stake in the fields which were initially explored and partly developed by the corporation.

As per the joint venture agreement, EOGIL would seek the Petroleum Ministry's nod for sale of assets to the prospective buyer as neither RIL nor ONGC had the first right of refusal to the partners.

Sources said, as per the agreement, ``no assignment or transfer shall be effective until the government's approval is received, which may be given on such terms as it may deem fit.''

``...The applicant (withdrawee) shall also submit such information relating to the prospective assignment or transfer as the government may reasonably require to enable proper consideration and disposal of the application,'' they added.

EOGIL officials had met Petroleum Minister Ram Naik onOctober 17 to seek permission to exit from the joint venture, which produces around 300 million cubic metres of gas and around 29,000 barrels of oil per day.

EOGIL officials had also written to ONGC Chief informingthe decision to sell oil and gas assets in India as part of annual rebalancing of assets and expanding into trading operations and communications infrastructure, sources said.