Mukesh Ambani's Reliance Industries (RIL) on Tuesday said that its subsidiary would sell some of its shale assets in the United States to privately held Sundance Energy Inc for $100 million.
Mukesh Ambani’s Reliance Industries (RIL) on Tuesday said that its subsidiary would sell some of its shale assets in the United States to privately held Sundance Energy Inc for $100 million. This is a part of RIL’s exit in US shale investments. Reliance Eagleford Upstream Holding LP, a subsidiary of both Reliance Holding USA and Reliance Industries Limited announced the “signing of a purchase and sale agreement with Sundance Energy”, the company said in a letter to stock exchanges.
The agreement with Sundance Energy is to divest RIL’s interest certain acreage, producing wells and related assets in the western portion of its Eagle Ford shale position for $100 million. The sale is expected to conclude in the first quarter of the fiscal year 2019. US-based Pioneer Natural Resources Co, which was a partner in the asset, also exited the blocks.
This is the second such sale by Mukesh Ambani’s Reliance in the US. Last October, Reliance had sold an asset block in the Marcellus shale region in Pennsylvania. However, despite the sale, Reliance said that it will continue to retain its interest in the remaining Eagle Ford assets which are at the core of its “development priorities”. The assets that are being sold are located in Atascosa, La Salle, Live Oak and McMullen Counties, Texas.
Reliance is India’s largest oil-to-telecom conglomerate backed by World’s 19th richest man Mukesh Ambani. RIL latest venture in telecom market with cheap 4G services through its subsidiary Reliance Jio is disrupting country’s digital foray. RIL is India’s largest private sector company, with a consolidated turnover of INR 330,180 crore for the year ended March 31, 2017.