The Business Bytes
TBB BUREAU
MUMBAI, November 08, 2021
Reliance Eagleford Upstream Holding, LP (“REUHLP”) a wholly owned step-down subsidiary of Reliance Industries Limited (“RIL”), announced the signing of agreements with Ensign Operating III, LLC (“Ensign”), 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.
A Purchase and Sale Agreement (“PSA”) 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.
Citigroup Global Markets, Inc. acted as financial advisor to Reliance and Gibson, Dunn & Crutcher LLP served as its legal counsel.
Reliance is India’s largest private sector company, with a consolidated turnover of Rs 539,238 crore ($73.8 billion), cash profit of Rs 79,828 crore ($10.9 billion), and net profit of Rs 53,739 crore ($7.4 billion) for the year ended March 31, 2021.
Reliance’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, and digital services.
