Reliance Exits North America Shale Gas Business

Reliance Industries Limited (RIL) has exited from the shale gas business in north America, the company announced on Monday.

It signed an agreement on November 8, 2021 (Monday) to sell off the assets associated with its subsidiary Reliance Eagleford Upstream Holding, LP (REUHLP) in Eagleford shale play. 

The agreement has been signed between REUHLP and Ensign Operating III, LLC, a Delaware-based limited liability company.

The pact was signed with the aim of selling off REUHLP's "interest in certain upstream assets in the Eagleford shale play of Texas, USA", a statement issued by RIL said. 

"With this transaction, Reliance has divested all its shale gas assets and has exited from the shale gas business in North America," the statement said.

It further informed that "the sale is at a consideration higher than current carrying value of the assets".

Citigroup Global Markets Inc acted as financial advisor to Reliance in the deal, and Gibson, Dunn & Crutcher LLP served as its legal counsel.