Enron plans to withdraw from oil, gas operations

NEW DELHI, OCT 18: Enron has approached the Government for permission to withdraw from its present oil and gas operations at Panna, Mukta ...

NEW DELHI, OCT 18: Enron has approached the Government for permission to withdraw from its present oil and gas operations at Panna, Mukta and Tapti fields. Vice President (International Operations) of Enron, Mike Stewart and country manager of Enron Oil and Gas India Ltd, Larry B Morse met Petroleum Minister Ram Naik with the proposal to withdraw from the field, where it is working as an operator, on the grounds that it was their corporate policy decision.

Enron officials also assured Naik that they would continue to give attention in these projects for production till their formal withdrawal. Sources said Enron would put its equity on block and the ministry has a role to vet the production sharing contract with the new partner.

Naik said that Enron officials also assured that they would take care of employees affected by the decision. Enron holds 30 per cent share in the Ravva, Panna-Mukta and Tapti oil and gas fields while ONGC, the promoter of the project, owns 40 per cent and remaining 30 per cent with Reliance.

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As per the corporate planning of Enron, the company would exit from gas and oil fields to concentrate on services sector including power trading and E-commerce.

Meanwhile, the government has put on hold the application of Enron power’s Indian subsidiary for permission to enter into power trading business, power ministry officials said. They said that under the prevailing laws, Enron’s application could not be entertained.

Enron is believed to have sought permission to supply power to other states from its Dabhol power project. Ministry officials, however, indicated that their case could come up for review after the passage of electricity bill in parliament.

Under the present dispensation, transmission is state’s monoploy and proposed bill, likely to be approved in the winter session, provides for opening up of the transmission sector.