Reliance's US Shale JVs to Cut Expenditure

Sharp decline in crude oil prices in recent months has led Reliance Industries' (RIL) three shale gas joint ventures (JVs) in the US to reduce operating and capital expenditure.

“All three JVs are actively pursuing opex and capex reduction initiatives in the current commodity price downturn,” the company said in its earnings statement for the quarter ending December 2014 last week.

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.

Operationally, the business continued its strong performance, with production at record levels, especially at Pioneer and Chevron JVs, RIL said. Gross JV production averaged at approximately 1.25 Bcfe/day, reflecting growth of 5 percent quarter-on-quarter and 21 percent over third quarter of fiscal year 2013-2014.

Pioneer JV’s gross production averaged at 725 Mmcfe/d, including approximately 69,300 bbl/d of condensate reflecting a 3 percent growth over the previous quarter. Production at Chevron JV continued on its growth trajectory at 366 Mmcfe/d, a 6 percent growth sequentially. At Carrizo JV, there was 10 percent sequential increase in production rates to 157 Mmcfe/d during the quarter.

India’s biggest private company has already pumped $7.9 billion since 2010 in its US shale gas and oil business.