GAIL to buy 20 percent in US shale gas assets for $ 100 mn

State-run utility GAIL India said it had agreed to buy a 20 percent stake in one of Carrizo Oil & Gas Inc’s shale gas assets in the United States and would invest a total of $300 million over the next five years.

GAIL and Carrizo will form a joint venture in the US firm’s lucrative Eagle Ford shale assets, the companies said in separate statements.

GAIL’s investment includes upfront cash payment of $63.7 million and a carry amount of $31.3 million linked to Carrizo’s future drilling and development costs, GAIL said.

[caption id=“attachment_95523” align=“alignleft” width=“380” caption=“GAIL and Carrizo will form a joint venture in the US firm’s lucrative Eagle Ford shale assets. Reuters”]  [/caption]

GAIL “will consider expanding its business portfolio in the North American market by pursuing various upstream and midstream opportunities including LNG export to India,” Chairman BC Tripathi said in the statement.

More from Fwire

BCCI earned more than Rs 2,400 crore in IPL 2022, reveal documents Eight Russian judokas barred from world championships after Ukraine boycott

The company owns India’s biggest gas pipeline network of about 8,700 kilometres, with capacity to transmit about 170 million cubic metres of gas daily.

Carrizo said it expected the drilling carry amount to be fully realised in less than a year.

Energy major Reliance Industries, India’s top private sector firm, last year struck three shale gas joint ventures in the United States, including a $1.7 billion deal with Atlas Energy to own 40 percent of its Marcellus Shale operations.

Reuters