Reliance Industries exits shale gas biz in North America by divesting Eagleford Upstream assets

By: |
Updated: November 09, 2021 7:36 AM

RIL had been selling its shale assets in the US since 2015, when crude oil prices started to drop, making the projects unviable and difficult to operate.

reliance industriesRIL had been selling its shale assets in the US since 2015, when crude oil prices started to drop, making the projects unviable and difficult to operate.

Reliance Industries (RIL) on Monday announced its exit from the shale gas business in North America, after it sold the last of its remaining assets in the Eagleford shale fields in Texas, US. Reliance Eagleford Upstream Holding, a wholly-owned step-down subsidiary of RIL, on November 5 agreed to sell some of its upstream shale gas assets in the Eagleford fields to Ensign Operating III LLC, a Delaware based company, at a consideration value higher than the current carrying value of the assets, the company said.

RIL had been selling its shale assets in the US since 2015, when crude oil prices started to drop, making the projects unviable and difficult to operate. Reliance had between 2010 and 2013 bought three upstream oil exploration assets in joint venture with Chevron, Pioneer Natural Resource and Carrizo Oil & Gas; and a midstream joint venture with Pioneer. Total aggregate investments in the three assets have been close to $8.2 billion till 2016.

In June 2015, the company sold its Eagle Ford (EFS) midstream joint venture with Pioneer Natural Resources for $1 billion. RIL had spent $46 million in acquiring the 49.9% stake in EFS and invested another $208 million over the years. Following this sale, in 2017, RIL sold Marcellus shale gas assets in north-eastern and central Pennsylvania for $126 million.

In February 2021, RIL sold its shale gas assets in the Marcellus fields of southwestern Pennsylvania to Northern Oil & Gas company for $250 million.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Govt offering up to 50% discount to commercial miners for coal gasification
2IPPs seek stricter rules to ensure quicker payments from discoms
3SC allows Yes Bank to vote in Dish TV’s AGM