Reliance to buy Carrizo's shale business in $392 mn

by Amitjha | August 4, 2010 at 11:09 pm

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Indian Oil and Gas giant, Mukesh Ambani led, Reliance Industries Limited is all set to buy its third shale gas business in US, Company said in a statement. As per deal RIL will buy 60% stake in Carrizo Oil and Gas Inc led Marcellus-gas acerage for a sum of US $ 392 million.

In this tough situation when BP is ailing after Gulf oil spill episode, the Oil giants from across the world is re-stratezing their business searching new horizon. In this scenario RIL's third venture in shale business is opening new dimension in oil diplomacy between India and US.

Mukesh Ambani-led Reliance Industries today said it will buy its third shale gas asset in the United States for USD 392 million.

Reliance will pay USD 340 million in cash to acquire a 60 per cent stake in the Marcellus shale-gas acreages held by Carrizo Oil and Gas Inc and its partner, the company said in a press statement.

The remainder USD 52 million would in Carrizo's drilling cost in the Marcellus shale-gas areas of central and northeast Pennsylvania.

The Mumbai-based firm in April had bought a 40 per cent stake in Atlas Energy Inc's Marcellus Shale acreage for USD 1.7 billion. In June, it had agreed to buy a 45 per cent stake in Pioneer Natural Resources Co's Eagle Ford shale natural gas asset in Texas for about USD 1.36 billion.