Mumbai : Reliance Industries said it has sold its entire 49.9 per cent interest in a US shale oil and gas pipeline joint venture to New York-listed Enterprise Products Partners for USD 1.073 billion.
Reliance and its partner Pioneer Natural Resources Co sold off Eagle Ford (EFS) Midstream venture, that owns a 460 miles pipeline network, to Enterprise Products Partners for USD 2.15 billion. Pioneers held 50.1 per cent interest.
“Under the terms of the definitive agreements, Enterprise will pay Reliance approximately USD 574 million in cash at closing and make the final payment of USD 499 million in cash on or before the first anniversary of the closing date,” RIL said in a statement.
The transaction, under which Reliance Holding USA Inc, a subsidiary of RIL, signed definitive agreements for the sale of its entire holding of 49.9 per cent interest in EFS Midstream LLC to an affiliate of Enterprise Products Partners LP, is to close by the third quarter of 2015.
RIL has since inception made an investment of USD 208 million in EFS and received distributions of USD 75 million since 2013.
RIL holds 45 per cent interest in the Eagle Ford upstream joint venture and the rest 9 per cent is with Newpek LLC. It is being speculated that RIL may be looking at selling this stake as well.
RIL bought 45% interest in Pioneer Natural Resources Co’s Eagle Ford shale formation of south Texas for USD 1.3 billion. The company statement however did not say anything on the upstream venture.
Besides Eagle Ford, RIL has two more shale ventures in the US — 40% stake in Chevron’s Marcellus shale acreage and a 60% interest in Carrizo Oil and Gas Inc’s Marcellus shale acreage in Central and Northeast Pennsylvania.
