Details wanted on link between Enron and EOGIL

Vol 5, PW 22 (19 Dec 01) People & Policy

Also worried sick are government officials, petrified at the thought of a nightmare scenario where three prolific Indian oil-producing assets are swallowed up by international creditors or end up in court for more arbitration.

On 3rd December, a day after Enron filed for ' Chapter 11', the oil ministry held a top-level meeting to discuss what to do. Panic-stricken officials ordered the Directorate General of Hydrocarbons to compile a detailed list of all claims pending againstEnron Oil & Gas (India).

They also ordered the DGH and ONGC to find out more about the relationship between EOGIL and its parent company Enron Corporation - in particular the validity of a "parent company financial and performance guarantee" given by Enron Corporation under the PSC. "What particularly needs to be looked at," reveals a source "is that the original parent company guarantee submitted was given by a company (Enron Corporation) that is no longer around!" Enron's Sherrick meanwhile cooperate as best he can.

On 11th December he responds to an information request from ONGC chief Subir Raha: "If upon further reflection you determine that you require such documentation (and we do not understand why you would!) we will begin the process of sending them to you. However, this process will not be quick and you should expect a delay of some days before you receive it.

It will take some time to order these from Delaware and the Cayman Islands."