Reliance Sells Pennsylvania Shale Assets for $126mn

India’s Reliance Industries announced on October 6 that is going to sell one of its US shale assets to BKV Chelsea, an affiliate of Kalnin Ventures, for $126mn.

Reliance may additionally receive contingency payments of up to $11.25mn in total, based on natural gas prices exceeding certain thresholds over the next three years.

The assets mainly produce gas and are operated by Carrizo Oil & Gas; they are located in the Pennsylvanian counties of Susquehanna, Wyoming and Clearfield.

"This transaction represents an opportunistic sale of developed upstream Marcellus assets and ends a successful partnership of seven years with Carrizo in a joint sale. We will continue to actively manage the remainder of our US shale resources." Walter Van de Vijver, CEO of Reliance Holding USA said.

The area operated by Carrizo is one of three upstream assets in the USA owned by Reliance. The latter remains invested in the Marcellus shale project via its non-operated position with Chevron in southwestern Pennsylvania and in the Eagle Ford project, via its non-operated position with Pioneer in Texas.

Reliance has invested almost $2bn in US shale assets.  

Shardul Sharma