Reliance to buy 60% stake in US shale-gas venture

Reliance Industries said on Thursday it will buy a 60 per cent stake in a shale-gas venture in the US for $392 million, the third unconventional gas acquisition made by the Mukesh Ambani-run firm this fiscal.

RIL said it will pay $340 million in cash and $52 million in drilling cost to Carrizo Oil and Gas Inc and its partners for a 60 per cent stake in the Marcellus shale-gas areas of central and northeast Pennsylvania.

RIL president for International E&P Business Walter Van de Vijver said, "Reliance is excited about the opportunity to further expand presence in the Marcellus Shale in the United States.

The Marcellus Shale is a giant rock formation underlying Pennsylvania, New York and other states.

"The proposed joint venture (with Carrizo) will supplement strengths achieved through our recent joint ventures and further expand our footprint in North American shale gas operations."

The Mumbai-based firm had in April bought a 40 per cent stake in Atlas Energy Inc's Marcellus Shale acreage for $1.7 billion.

In June, it had agreed to buy a 45 per cent stake in Pioneer Natural Resources Co's - Eagle Ford shale natural gas asset in Texas for about $1.36 billion.