RIL to divest some US shale assets to Sundance Energy
28 March 2018
Reliance Industries has entered into an agreement to sellsome of its shale assets in Texas for $100 million to US-based energy company Sundance Energy.
RIL intends to divest stake in certain acreage, producing wells and related assets in the western portion of its Eagle Ford shale position, held by its subsidiary Reliance Eagleford Upstream Holding LP.
This transaction is in conjunction with sales made by Pioneer Natural Resources USA Inc and Newpek LLC, the other working interest owners in the joint development with Reliance.
The assets being sold are located in Atascosa, La Salle, Live Oak and McMullen counties in Texas, and were not part of near-term development plan of the joint development.
Reliance continues to retain its interest in the remaining Eagle Ford assets that are core to its development priorities, the company said in a statement.
The sale is expected to close in 1QFY19, subject to customary closing conditions.
Sundance Energy, a privately held company, does not belong to the promoter group and the transaction does not fall within related party transactions.
RIL is India’s largest private sector company, with a consolidated turnover of R330,180 crore ($50.9 billion), cash profit of Rs 42,800 crore ($6.6 billion) and net profit of Rs 29,901 crore ($4.6 billion) for the year ended March 31, 2017.