RIL held stakes in three US shale gas ventures – 45 per cent with Pioneer Natural Resources in the Eagle Ford shale play; 40 per cent with Chevron and 60 per cent with Carrizo Oil & Gas in the Marcellus Shale play.
New Delhi : Reliance Industries Ltd Friday said it has sold one of its three shale gas assets in the US for $126 million, offloading stake in Marcellus, operated by Carrizo. RIL held stakes in three US shale gas ventures – 45 per cent with Pioneer Natural Resources in the Eagle Ford shale play; 40 per cent with Chevron and 60 per cent with Carrizo Oil & Gas in the Marcellus Shale play. Reliance Marcellus II, LLC, a subsidiary of Reliance Holding USA, Inc and RIL, signed agreements to “divest all of its interest in certain upstream assets in north-eastern and central Pennsylvania”, the company said.
The assets, which are currently operated by Carrizo Oil & Gas, Inc, were sold to BKV Chelsea, LLC, an affiliate of Kalnin Ventures LLC, for $126 million, subject to customary closing terms and conditions. Additionally, Reliance could receive contingent payments of up to $11.25 million in aggregate based on natural gas prices exceeding certain thresholds over the next three years.
Walter Van de Vijver, President and CEO of Reliance Holding USA, Inc, said: “This transaction represents an opportunistic sale of developed upstream Marcellus assets and ends a successful partnership of 7 years with Carrizo in a joint sale.” RIL said it will continue to manage the remainder of its US gas assets.
