Reliance Industries exits US shale gas business

Reliance Industries Ltd (RIL) has completely exited from the upstream oil and shale gas business in the US.

Reliance Eagleford Upstream Holding, LP, a wholly owned step-down subsidiary of RIL, has signed an agreement with Ensign Operating III, LLC, a Delaware limited liability company to divest its interest in certain upstream assets in the Eagleford shale play of Texas. “With this transaction, Reliance has divested all its shale gas assets and has exited from the shale gas business in North America,” it said.

Reliance said a purchase and sale agreement has been signed between the RIL arm and Ensign on November 5. “The sale is at a consideration higher than current carrying value of the assets,” RIL said. It did not disclose the price at which this transaction took place.