Reliance to Sell Stake in US Venture

Reliance-Industries-Logo_200x138The Telegraph

Mumbai, Nov. 5: Reliance Industries Ltd (RIL) is planning to sell its 49.9 per cent stake in a US joint venture, which owns a pipeline network for the transportation of shale oil and gas.

Apart from RIL, its partner in the US — Pioneer Natural Resources Co (Pioneer) — is also seeking a buyer for its stake in the Eagle Ford Midstream venture.

Pioneer today said it was looking at divesting its 50.1 per cent share in the Eagle Ford Shale Midstream business (EFS Midstream).

“Reliance Holding USA, Inc (Reliance) owns the remaining 49.9 per cent of the EFS Midstream business and is also planning to divest its share in a joint process with Pioneer. Pioneer is the operator of the business,” it said.

EFS Midstream was formed in 2010 to construct facilities that offer gathering and handling services for the condensate and natural gas produced from wells on dedicated acreage in the Eagle Ford Shale block.

These services are provided for the Eagle Ford Shale upstream joint venture operated by Pioneer where it holds a 46 per cent stake and the rest is held by Reliance at 45 per cent and Newpek LLC at 9 per cent.

The EFS Midstream system consists of 10 central gathering plants and around 460 miles of pipelines.

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