Reliance to sell US shale gas assets

Reliance Industries Ltd has closed its last US shale gas asset after agreeing to sell its holdings of EagleFord shale gas assets for a private amount.

Between 2010 and 2013, Reliance purchased shares in three upstream exploration joint ventures with Chevron, Pioneer Natural Resources, Calizo Oil and Gas, and a midstream joint venture with Pioneer.

Midstream refers to the processing, storage, transportation and sale of hydrocarbons.

“RIL’s wholly owned step-down subsidiary, Reliance Eagleford Upstream Holding, LP has signed an agreement with Delaware’s limited liability companies Ensign Operating III, LLC to sell interest in certain upstream assets in Eagleford’s shale play. We announced that we have signed the agreement. Texas, USA “.

The deal sold all shale gas assets and withdrew from the North American shale gas business, the statement said.

“For this sale, a sales agreement was signed between REUHLP and Ensign on November 5, 2021. The sale is a higher consideration than the current book value of the asset,” he said in detail.

In 2017, Reliance sold Marcellus Shale, the first shale gas business in northeastern and central Pennsylvania, for $ 126 million. In 2010, we purchased a 60% stake in our assets for $ 392 million.

In June 2015, the company sold its Eagle Ford midstream joint venture with Pioneer Natural Resources in the United States for $ 1 billion.

Reliance spent $ 46 million to acquire a 49.9% stake in Eagleford and invested an additional $ 208 million.

In February of this year, we agreed to sell all shares of certain upstream assets of Marcellus Shale Gas Assets in southwestern Pennsylvania for $ 250 million.

Reliance on shale gas was bullish until 2014, but the decline in crude oil prices since late 2014 has hit valuations.

Shale gas blocks are far more damaged than traditional oil and gas blocks because they are economically viable only when prices exceed certain thresholds.

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