Reliance Industries on Monday announced its exit from the shale gas business from North America. Reliance has sold its remaining assets in the Eagleford Shell Fields located in Texas, USA. Reliance Eagleford Upstream Holding is a wholly owned subsidiary of Reliance. Reliance agreed on November 5 to sell its business to Delaware-based Ensign Operating III LLC. The company informed that this deal has been done at a higher value than the present value of the properties. Shale gas is a type of natural gas extracted from sedimentary rocks.
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Properties sold due to falling crude oil prices
Reliance has been selling its shale assets since the last six years i.e. 2015. Reliance took this decision due to the falling price of crude oil because due to the falling price of crude oil, the shale gas business was not proving profitable and it became difficult to operate. Reliance bought three upstream oil exploration assets between 2010 and 2013 in a joint venture with Chevron, Pioneer Natural Resources and Carrizo Oil & Gas, and a midstream joint venture with Pioneer. In all these three assets, Reliance had invested $ 820 million (Rs 60.59 thousand crore) till 2016.
Reliance sold all assets in six years
In June 2015, the company sold Eagle Ford (EFS) Midstream Joint Venture with Pioneer Natural Resources. The deal was worth about $ 100 million (Rs 7389 crore). Reliance had bought 49.9 per cent stake in EFS for $46 million (Rs 339.90 crore) and over the next few years the company invested $208 million (Rs 1536.93 crore) in it. Following its sale, Reliance sold Marcellus shale gas assets in North-Eastern and Central Pennsylvania in 2017 for $126 million (Rs 931.02 crore). After this, in February 2021, Reliance sold the Marcellus Fields of Southwestern Pennsylvania to Northern Oil and Gas Company for $ 250 million (Rs 1847.27 crore).
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