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BG to boost India presence through Enron unit acquisition

British oil and gas major BG Group Plc on Tuesday said it planned to develop India as one of its "biggest" markets, and it is for this reason that it was seeking to acquire oil equity of beleagured Enron Corp in Tapti gas field and Panna-Mukta oil and gas fields.

BG expects to get final approval for the revised deal to purchase the entire share capital of Enron Oil and Gas India Ltd in fields for $350 million by the middle of next month from US authorities overseeing the bankruptcy of Enron Corp.

"The whole acquisition crystallises India as a new BG Group core business area," company spokesperson Nicole McMahon said in London.

Altough BG had originally agreed to buy EOGIL's 30 per cent stake in the three producing fields and 62.64 per cent interest in CB-OS/1 exploration block, bankruptcy of Enron complicated the buyout.

"We re-negotiated the agreement taking into account Enron's current position and hope to complete acquisition of Enron India by middle of next month," the official said.

BG holds a 65 per cent stake in Gujarat Gas Co, which is developing a commercial and retail gas network in Gujarat, and a 50 per cent share in Mahanagar Gas Ltd, which is building a gas distribution business in Mumbai.

The British company also has plans to develop a 3 million tonnes capacity LNG import terminal in Gujarat.

"The producing (Panna-Mukta and Tapti) fields are complementary to our existing business in India," McMahon added.

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