RIL To Acquire 45 In Texas Shale Gas Field (22-Jun-2010)
Reliance Industries chairman Mukesh Ambani promised his shareholders of building a major position in Shale Gas business.
Meanwhile, RIL is planning to acquire 45% stake in a Texas shale gas field controlled by Pioneer Natural Resources of the US.
Pioneer has about 3,10,000 acres in the Eagle Ford Shale play in South Texas.
RIL, however, is expected to give around $1.35 billion as an investment for acquiring this stake.
Barclays Capital and UBS, in the meantime, are advising RIL on this deal.
The deal, however, would be RIL''s second purchase of a US shale gas interest in as many months.
Moreover, the company had made its first breakthrough in the US in April.
This is when it had acquired 40% stake in Atlas Energy Inc''s 3,00,000 acres shale gas property for $1.7 billion.
Exxon Mobil Corp had agreed to pay $ 41 billion deal to buy XTO Energy while BP, Statoil and Total have each struck deals with Chesapeake Energy.
Earlier, it was said that Reliance Industries (RIL) looks to foray into thermal power projects after telecom.
It may bid for the ultra mega power projects (UMPPs) in Chhattisgarh and Orissa.
It is expected to bid for the 2 UMPPs for which the government has issued RFQs (Request for Qualification).
Meanwhile, the government invited bids for the 4,000 Mw Sarguja UMPP in Chattisgarh by July 5 and a similar project at Bedabahal in Orissa by July 30.
RIL and Reliance ADA Group, however, agreed to cancel all existing non-compete pacts which the groups had signed in 2006.
This, in turn, permits them to foray into areas of business hitherto barred for each other.
Both RIL and ADAG also announced to expeditiously negotiate gas deal in accordance with the Supreme Court order.
On the other hand, RIL already acquired control of Infotel.
It is an internet service provider that has won pan-India broadband licence in the recently concluded auction.
The UMPP bids may mark Mukesh''s entry into power sector.
In the meantime, the government already allotted 4 ultra mega power projects of 4,000 MW each in the states of Madhya Pradesh (Sasan), Andhra Pradesh (Krishnapatnam), Jharkhand (Tilaiya) and Gujarat (Mundra).
In addition, 3 of the 4 allotted projects have been bagged by Reliance Power namely Sasan, Krishnapatnam and Tilaiya and the one at Mundra is being developed by Tata Power.
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