Tuesday, July 13, 2010

India's Reliance Industries Looking at Third North American Shale Gas Deal?

Several Indian newspapers are reporting that Reliance Industries, India's biggest and best known company, is close to making its third North American shale gas deal in three months.  Reliance bought 40% of Atlas Energy's Marcellus Shale acreage and 45% of Pioneer National Resources's Eagle Ford Shale assets in the past couple of months. 

Reports did not disclose the target company or shale formation.  If the investment does come to fruition, I have my doubts that it will be in the Haynesville Shale, but I'm prepared to be wrong.  Reliance favors investing in companies that maintain tight cost controls.  Both EnCana and Chesapeake are talking to Asian companies about joint venture opportunties.  While I'm not sure the Reliance and Chesapeake would make great partners, I'm sure Reliance would like to attend the Great International Shale School at Chesapeake U. to be able to apply shale gas lessons on the Indian subcontinent.

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