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BG deal to buy Enron Indian unit expires

British oil and gas producer BG Plc said on Monday that a deal to buy Enron Oil & Gas India Ltd had expired, following the collapse of the US utility giant.

BG said progress to conclude the deal had been slower than anticipated after Enron filed for Chapter 11 bankruptcy protection in the United States.

"The original agreement has now expired," BG said in a statement.

BG had originally agreed to buy the Enron Indian unit for $338 million, and had hoped to conclude the deal by the end of this year.

The acquisition would have given BG access to the Panna oilfields and Tapti gas fields on the west coast. The fields produced an average of 70 million cubic feet of gas per day and over 8,000 barrels of oil per day in the year to end-March 2001.

"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," BG added.

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