Reliance Industries could be adding another valuable project to its North American shale portfolio within the next month, according to a report by Platts.
Reliance, India's largest private oil and gas company, is currently in talks with Oklahoma City-based Chesapeake Energy (NYSE: CHK) regarding a possible joint venture project in the Eagle Ford. To date, Chesapeake holds approximately 550,000 acres in the popular South Texas shale play.
"The deal talk is around $14,000/acre," says Subash Chandra, a Jefferies & Co. analyst. "The devil is in the details, but the headline is likely to look good."
Should an agreement be reached between the two companies, this will be the fourth U.S. shale project in Reliance's portfolio. In July, the company entered into a $1.35-billion joint venture with Dallas-based Pioneer Natural Resources Co. (NYSE: PXD) and its partner Newpek LLC in the Eagle Ford. Additionally, Reliance acquired a 40% interest in a Marcellus shale project headed up by Atlas Energy for $1.7 billion in April.
Representatives from both Reliance and Chesapeake declined comment on the rumors. However should a successful agreement be reached, an announcement regarding the deal could be made within 30 days.
Recommended Reading
2023-2025 Subsea Tieback Round-Up
2024-02-06 - Here's a look at subsea tieback projects across the globe. The first in a two-part series, this report highlights some of the subsea tiebacks scheduled to be online by 2025.
Drilling Tech Rides a Wave
2024-01-30 - Can new designs, automation and aerospace inspiration boost drilling results?
Tech Trends: Autonomous Drone Aims to Disrupt Subsea Inspection
2024-01-30 - The partners in the project are working to usher in a new era of inspection efficiencies.
TGS, SLB to Conduct Engagement Phase 5 in GoM
2024-02-05 - TGS and SLB’s seventh program within the joint venture involves the acquisition of 157 Outer Continental Shelf blocks.
StimStixx, Hunting Titan Partner on Well Perforation, Acidizing
2024-02-07 - The strategic partnership between StimStixx Technologies and Hunting Titan will increase well treatments and reduce costs, the companies said.