MOSCOW (MRC) -- Reliance Industries (RIL) has exited all its business in the upstream oil and gas shale play that was based out of the United States, according to Business Standard.
A company statement said that Reliance Eagleford Upstream Holding, a wholly-owned step-down subsidiary of Reliance Industries, announced the signing of agreements with Ensign Operating III, a Delaware limited liability company, to divest its interest in certain upstream assets in the Eagleford shale play of Texas, USA.
"With this transaction, Reliance has divested all its shale gas assets and has exited from the shale gas business in North America," RIL said.
Reliance said that a Purchase and Sale Agreement has been signed between REUHLP and Ensign on November 5, 2021 for this sale. The sale is at a consideration higher than current carrying value of the assets.
RIL officials refused to disclose the price at which this transaction took place. The company is now left with nil interest in US-shale assets. A part of the Eagleford asset was sold in March 2018 to Sundance Energy for about USD100 million.
Earlier this year, RIL had divested all of its interest in certain upstream assets in the Marcellus shale play of southwestern Pennsylvania. Those assets were sold to Northern Oil and Gas, (NOG), a Delaware corporation. The deal was for a consideration of USD250 million cash and warrants that give entitlement to purchase 3.25 million common shares of NOG at an exercise price of USD14.00 per common share in next seven years. A Purchase and Sale Agreement was signed between Reliance Marcellus and NOG on February 3, 2021 for this sale.
As MRC reported earlier, Indian refining giant Reliance Industries is doubling its polyethylene terephthalate (PET) recycling capacity by setting up a recycled polyester staple fiber (PSF) manufacturing facility in Andhra Pradesh. The move is part of RIL's commitment to lead the industry on circular economy, enhance its sustainability quotient and bolster the entire polyester and polymer value chain.
According to MRC's ScanPlast report, August estimated PET consumption in Russia reached 65,350 tonnes, up by 19% year on year. Russia's overall estimated PET consumption increased in the first eight months of 2021 by 12% year on year to 535,610 tonnes.
Reliance Industries is one of the world's largest producers of polymers. Thus, the company produces among others polypropylene, polyethylene and polyvinyl chloride.