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----- Forwarded by Steven J Kean/NA/Enron on 10/16/2000 10:15 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