Reliance Industries Looking to Divest Stake in Eagle Ford Shale Midstream Business

Reliance Industries (RIL) and its partner in Eagle Ford shale business, Pioneer Natural Resources Company are looking to sell stake in the midstream business.

Pioneer on Tuesday announced that the company is pursuing the divestment of its 50.1 percent share of the Eagle Ford Shale Midstream business (EFS Midstream). Reliance which hold the remaining stake is also seeking to divest its share in a joint process with Pioneer.

The partners currently have no plans to divest Eagle Ford shale upstream business.

The EFS Midstream business was formed in 2010 to construct facilities to provide gathering and handling services for condensate and natural gas produced from wells on dedicated acreage in the Eagle Ford.

These services are provided for the Eagle Ford shale upstream joint venture operated by Pioneer (Pioneer 46%, Reliance 45% and Newpek LLC 9%) and for various third parties. The EFS Midstream system consists of 10 central gathering plants (CGPs) and approximately 460 miles of pipelines. 

Pioneer expects to open a data room in December.