Reliance exits the shale gas business from the US

New Delhi: Mukesh Ambani-led Reliance is set to pull out of the shale and gas business in the US. The company said Reliance Eagleford Upstream Holding has announced the sale of some of Eagleford's upstream assets in the US with Ensign Operating-2 Delaware Limited liability. The company said that with the deal, Reliance would exit all of its shale gas assets and all of its shale gas business in North America. Reliance said the sale agreement for the deal expired on November 5. The selling price of this asset may be higher than expected.

Reliance officials have declined to say at what price the deal was struck. Thus, the company no longer has any shell assets in the United States. As part of this, Eagleford sold to Sundance Energy in March 2016 for કરોડ 100 million.

Earlier this year, Reliance sold some of its upstream assets in the Marseilles Shell Play in southwestern Pennsylvania. The asset was sold to Northern Oil & Gas for સો 30 million in cash. While the warrant obtained the right to buy 4.5 lakh shares of NOG through its warrant. It will be priced at ૪ 15 per share for the next seven years. The deal was struck on February 3, 2021.

According to the company, Reliance's stake in the US shell business was 11.1 billion cubic feet. Last year, production was 10.3 billion cubic feet. At the end of September 2021, it was earning 2.50 per million cubic feet, up from ૩૯ 2.8 last year.

Corona's declining demand for crude oil in the United States had the opposite effect on investments made by Indian companies in shell companies.