Indian oil-to-telecoms conglomerate Reliance Industries Ltd has agreed to sell a shale oil and gas block in the United States for USD126 million, a third of the price it paid seven years ago, amid a downturn in global oil prices.
BKV Chelsea LLC, an affiliate of energy investment firm Kalnin Ventures LLC, bought the asset, located in the Marcellus shale in northeastern and central Pennsylvania, from Reliance, the company said in a statement, adding it could further receive USD11.25 million based on changes in natural gas prices.
Reliance bought the Marcellus asset in 2010 for USD392 million. The U.S. shale market has since become highly competitive and companies have cut costs to stay afloat after a slump in crude oil and gas prices. Houston-based Carrizo Oil & Gas Inc, the operator of the Marcellus asset, also exited its investment, Reliance said. The deal reduces the number of Reliance-owned U.S. shale assets to two. Read More…
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