Reliance to Invest $1.36 Billion in U.S. Shale Gas Venture
Reliance Industries will invest $1.36 billion in shale assets of Pioneer Natural Resources, as the Indian energy major looks to build its presence in the U.S. shale gas sector. Under the agreement, Pioneer will sell a 45% stake in its Eagle Ford shale acreage in south Texas to Reliance for $1.15 billion, the U.S. firm said a statement.
Reliance has also entered into an agreement with Pioneers existing partner in the Eagle Ford Shale play for about $210 million. The deal is the second of its kind this year for Reliance, a petrochemicals-to-refining giant with a market value of $75 billion.
In April, Reliance agreed to pay $1.7 billion to Atlas Energy to form a joint venture and own a 40% stake in Atlas' Marcellus Shale operations in the eastern United States.
Companies from around the globe are increasingly investing in U.S. shale plays - underground rock formations that hold reserves of oil and natural gas. Shale gas accounts for between 15% and 20% of U.S. gas production but is expected to quadruple in coming years, touching off a scramble among producers large and small for access to resources.
(6/24/2010)
