Message-ID: <9680092.1075851013947.JavaMail.evans@thyme> Date: Mon, 16 Oct 2000 03:05:00 -0700 (PDT) From: steven.kean@enron.com Subject: EGEP Sale Announcement Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Steven J Kean X-To: X-cc: X-bcc: X-Folder: \Steven_Kean_Oct2001_2\Notes Folders\Attachments X-Origin: KEAN-S X-FileName: skean.nsf Please make sure that nothing goes out internally or externally without the approval of Cliff Baxter or Mark Metts. We need to continue our usual vetting process through both PR and IR, but need also to add Cliff and Mark. In getting the OK from Cliff and Mark we must have no OKs by default -- ie because we haven't received comments or a response on time. If anybody needs help getting to Cliff or Mark, then Mark Palmer, Karen Denne, or I can help. Thanks ----- Forwarded by Steven J Kean/NA/Enron on 10/16/2000 10:05 AM ----- John Ambler@ENRON_DEVELOPMENT 10/13/2000 04:39 PM To: Jimmy Mogal/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Steven J Kean/NA/Enron@Enron, Mark Palmer@ENRON, Johan Zaayman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: EGEP Sale Announcement Jimmy, I'll be working up a limited statement and Q&As, which we will need to run by Jeff Sherrick and Mark Metts. Once we have an approved statement I'll let you know. Of course, we would prefer to avoid publicity if possible. Until we have an approved statement, please call me to discuss if you have pressing demands. Thanks, John ---------------------- Forwarded by John Ambler/ENRON_DEVELOPMENT on 10/13/2000 04:26 PM --------------------------- Jeffrey Sherrick@ENRON 10/13/2000 03:04 PM To: Steven J Kean/NA/Enron@Enron, John Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jimmy Mogal/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Stephen Wallace/Corp/Enron@ENRON, Larry Morse/Corp/Enron@Enron, Mike Stewart/Corp/Enron@ENRON, Mark Koenig/Corp/Enron@ENRON, Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: EGEP Sale Announcement On Friday (last night Houston time) we announced Enron's decision to sell Enron Oil & Gas India Ltd. (EOGIL), our subsidary that owns a 30% interest in the Panna, Mukta and Tapti concession areas. We now have bankers involved and a data room is being prepared in Houston which made it extremely difficult to keep the deal quiet any longer. There were a rumors circulating through the office, but the reality of the announcement was still a shock to most of the employees in India and Houston. Attached is a memo we handed out to employees, but basically we said the following: 1) Selling assets or companies is a routine part of Enron's strategy to redeploy capital in the higher return opportunities. The company has exposure to a number of tremendous opportunities today that were not envisioned even twelve months ago. In line with this strategy, we are placing EOGIL in the market. 2) Depending on the success of finding an acceptable buyer for EOGIL, we will be reviewing the balance of our portfolio for transfer to other Enron entities or for sale as separate packages. We anticipate closing the EOGIL transaction and rationalizing the remaining portfolio by March 31, 2001. 3) Pending the success outlined in item #2, we will eliminate Enron Global E&P as an Enron business unit on March 31, 2001. 4) We announced some interim staff changes to facilitate the process. a) Jeff Sherrick would re-focus his time largely on the sale process b) Mike Stewart will be responsible for all India activity except the sale process c) Steve Harper will be responsible for EGEP's sale activity and coordination with our bankers and Corporate Development 5) Commented on the potential impact to employees in general terms. We told them it was pre-mature to outline all of the possibilities until we signed a PSA with a buyer. However, in general, there is a good likelihood that many people will either have opportunities for future employment with the buyers or through redeployment within Enron. Those people that do not remain with the assets or are not redeployed in Enron will be involuntarily terminated March 31, 2001 unless they are needed to close a transaction or to provide transition services to a buyer. I would like to keep this as low-keyed as possible. Last year when we were for sale there were not a lot of comments, but you never know. If anyone in the media picks up on this I would expect it to happen early next week. Mike Stewart is currently in India in the Mumbai office (01191228395841) and can be reached at the Mariott after-hours(01191228577878). He is fully briefed on our position regarding the activities within EGEP and EOGIL. Mike will be traveling offshore and to Baroda over the weekend and on Monday. I will be available all weekend and next week at the following numbers; (work) 713-853-5934, (home) 281-320-2198, (cell) 713-569-4713. I would suggest talking with Mike or I before making any comments to the media if possible. This afternoon I notified our partners and thr Gov't of India of our intention to market our assets. I will be making a trip to India soon to visit with the appropriate people in these organizations within the next two weeks. While I wouldn't expect this to happen, please refer any inquiries from our partners (ONGC and Reliance) or the GOI to Mike or me. As you might expect, we want to be careful and consistent in our message to these groups. I will keep you informed regarding any changes to the above. If you have any questions, contact me at the above numbers. jeff