Reliance exits from shale gas business in North America with divestment of interests in Eagleford shale play
Mumbai, November 8, 2021
Oil-to-telecom conglomerate Reliance today said it had exited from the shale gas business in North America with the sale of the last of its assets in the Eagleford shale of play.
"Reliance Eagleford Upstream Holding, LP (REUHLP) a wholly owned step-down subsidiary of Reliance Industries Limited (RIL), announced the signing of agreements with Ensign Operating III, LLC, a Delaware limited liability company to divest its interest in certain upstream assets in the Eagleford shale play of Texas, USA," a press release from Reliance said.
"With this transaction, Reliance has divested all its shale gas assets and has exited from the shale gas business in North America," it said.
The release said that a Purchase and Sale Agreement (PSA) has been signed between REUHLP and Ensign on November 5 for this sale. The sale is at a consideration higher than current carrying value of the assets, it said, without mentioning any figures.
Citigroup Global Markets, Inc. acted as financial adviser to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.