Reliance Industries Ltd (RIL) will be exiting the shale gas business in North America as an agreement was inked on November 8 to sell off the assets linked to its subsidiary Reliance Eagleford Upstream Holding, LP (REUHLP) in Eagleford shale play.
The pact for sale of assets has been inked between REUHLP and Ensign Operating III, LLC, a Delaware-based limited liability company.
The agreement is aimed at divesting REUHLP’s “interest in certain upstream assets in the Eagleford shale play of Texas, USA”, said a press release issued by RIL.
“With this transaction, Reliance has divested all its shale gas assets and has exited from the shale gas business in North America,” it added.
The purchase and sale agreement between REUHLP and Ensign was signed on November 5, 2021, the statement noted, further stating 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.