On October 3, 2001, BG Group plc announced that it had agreed to purchase the entire share capital of Enron Oil & Gas India Limited (EOGIL) for US$388 million from Enron Corp. The Group expected to conclude the Sale and Purchase Agreement by the end of this year.

Although progress has been made to close the transaction, it has been slower than anticipated and further complicated by Enron's recent Chapter 11 Bankruptcy Protection Filing in the USA.

The original agreement has now expired. BG Group is continuing discussions with Enron and local partners in the assets to bring about a satisfactory close to the transaction. BG Group will make an announcement on the outcome in due course.

Notes to Editors

The assets owned by EOGIL are 30 per cent interests in the Tapti gas field and the Panna/Mukta oil and gas field, and a 62.64 per cent interest in the CB-OS/1 exploration licence. All are located on the west coast of India