Reliance sells Pennsylvania shale asset for USD 250 mn

Billionaire Mukesh Ambani’s Reliance Industries Ltd has sold its stake in the shale gas asset in the US to Northern Oil and Gas Inc for USD 250 million, the firm said on Thursday. “Reliance Marcellus, LLC (RMLLC) a wholly-owned subsidiary of Reliance Industries Limited (RIL), announced the signing of agreements to divest all of its interest in certain upstream assets in the Marcellus shale play of southwestern Pennsylvania,” a company statement said.

These assets, which are currently operated by various affiliates of EQT Corporation, have been agreed to be sold to Northern Oil and Gas, Inc, a Delaware corporation, for USD 250 million cash and warrants that give entitlement to purchase 3.25 million common shares of Northern Oil and Gas (NOG) at an exercise price of USD 14.00 per common share in next seven years.

“A Purchase and Sale Agreement (PSA) has been signed between RMLLC and NOG on February 3, 2021, for this sale and the transaction is subject to customary terms and conditions of closing,” the statement said.

Reliance had between 2010 and 2013 invested in the US shale gas assets, buying stakes in three upstream oil exploration joint ventures with Chevron, Pioneer Natural Resource, and Carrizo Oil and Gas; and a midstream joint venture with Pioneer.

Midstream refers to the processing, storing, transporting and marketing of hydrocarbons.

ET Energy World
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