BG gains from Enron troubles

12 April 2012

ENRON'S troubles helped gas group BG to shave 10% off the price of the Indian oil and gas assets it is buying from the scandal-racked US company.

In October it agreed to pay $388m for the stakes in the Tapti and Panna/Mukta fields off India's west coast. Now the price is $350m (£245m), having been 'renegotiated to take account of Enron's current position' - that is, having its back to the wall.

BG chief executive Frank Chapman said the revised price is 'attractive'. It is subject to approval by Enron's creditors and the US Bankruptcy Court.

Enron's involvement in India has been controversial. It was accused of paying $20m to 'educate' politicians and bureaucrats about the virtues of a power plant near Bombay.

Multinational practices in India have been the target of campaigners such as prizewinning novelist Arundhati Roy. But this plant is not included in the sale to BG.

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