India's Reliance Plans $2 bn Investment in its US Shale Assets

Reliance Industries Ltd (RIL) has plans to invest around $2 billion in its US shale assets, reported Mint newspaper on Tuesday.

India’s biggest private company has already pumped $7.3 billion since 2010 in its US shale gas and oil business.

RIL is a partner in the shale resource base of Marcellus and Eagle Ford Shale gas plays in the US through its three joint ventures with Chevron, Pioneer and Carrizo.

According to the company’s June quarter results announcements, its shale gas operations posted a 26% increase in revenue to $270 million and 22% rise in operating profit to $201 million from the year-ago period, Mint said.

Company sources told Mint that the $2 billion of additional capex planned for the shale ventures will be largely directed towards the Marcellus region.

Most likely, the investment will flow into the Chevron shale acreage, sources told the newspaper.