Oil India exits US shale business
State-owned energy company Oil India (OIL) has exited the US shale oil and gas business, it said on January 15 in a stock exchange filing.
The company sold its 20% stake in the US shale oil and gas venture for $25mn to Delaware-based Verdad Resources, the operator of the project. "Oil India (USA) Inc (wholly owned subsidiary of OIL), divested its entire stake in Niobrara shale asset, USA," the company said, adding the consideration received was $25mn.
OIL and Indian Oil Corporation (IOC), another state-owned company, had together in October 2012 bought a 30% stake in Carrizo Oil & Gas's Niobrara shale asset in Colorado for $82.5mn. OIL owned the 20% stake while IOC held 10%. Carrizo sold its entire stake in the Niobrara asset to Verdad in January 2018.
Mumbai-listed Reliance Industries also exited the US shale gas business recently. Reliance Eagleford Upstream Holding, a wholly-owned subsidiary of Reliance, signed an agreement with Delaware-based Ensign Operating III to divest its interest in assets in the Eagleford shale play of Texas.