RIL to buy 60 pc stake in US shale gas venture

Written by: Samyuktha
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New Delhi, Aug 5: In yet another gas acquisition, Energy giant, Reliance Industries Ltd (RIL) is set to buy 60 per cent stake in a US shale gas venture.

RIL will pay 340 million dollars in cash and 52 million dollars in drilling cost to Carrizo Oil and Gas Inc and its partners for a 60 per cent stake in the Marcellus shale gas areas of central and northeast Pennsylvania, the Mukesh Ambani-led company said in a statement.

"Reliance is excited about the opportunity to further expand presence in the Marcellus Shale in the United States," RIL President for International E&P Business Walter Van de Vijver.

"The proposed joint venture (with Carrizo) will supplement strengths achieved through our recent joint ventures and further expand our footprint in North American shale gas operations," he added.

This is the third unconventional gas acquisition made by the Mumbai-based firm in this fiscal, bolstering its campaign towards turning global.

In Apr 2010, RIL bought a 40 per cent stake in Atlas Energy Inc's Marcellus Shale acreage for $ 1.7 billion. In Jun 2010, the company announced its intentions of buying 45 per cent stake in Pioneer Natural Resources Co's - Eagle Ford shale natural gas asset in Texas at about 1.36 billion dollars.

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