DGH demands more answers from Enron Oil & Gas

Vol 5, PW 24 (30 Jan 02) Exploration & Production

ENRON IS HAVING a hard time convincing Indian officials that the dramatic downfall of parent company Enron Corporation in the US will have no impact on the future of subsidiary Enron Global Exploration & Production, owner of Enron Oil & Gas India, and its 30% operatorship of Panna, Mukta and Tapti.

When Enron Corporation filed for bankruptcy last December, Shastri Bhavan asked upstream regulator Avinash Chandra to investigate the impact on Enron Oil & Gas. On 26th December, Chandrareplied to a three-page letter from Jeffrey Sherrick, head of Enron Global, with more questions.

"The doubts raised in my letter were to be clarified with concrete documentary evidence to enable (our) government to take appropriate action under the provision of thePSC," Chandra reminds Sherrick. "However, only views have been expressed without providing any documentary evidence.

Thus, the issues still remain unclarified." Chandra wants Enron to come clean on the corporate relationship between Enron Corporation, Enron Global and Enron Oil & Gas, and not hide behind claims that this is 'proprietary information'. He wants Enron to provide "relevant extracts" of Cayman Islands and US company law to confirm Enron's statement that EGEP and Enron Corporation are separate entities.

Third, Chandra wants to know if Enron has "third party creditors" in its Panna-Mukta-Tapti operations.