RIL and its partner Pioneer Natural Resources both want to exit from their joint venture EFS Midstream so that they can focus on shale oil production
Reliance Industries Ltd (RIL) wants to consider a divestment of its entire 49.9% stake in its US joint venture EFS Midstream LLC. Pioneer Natural Resources Co, RIL's partner in the JV had already stated their intention to divest their entire 50.1% shareholding in the EFS midstream.
EFS Midstream owns a 460-mile pipeline network for transportation of shale oil and gas.
RIL, as well as its partner Pioneer Natural Resources, are seeking a buyer for their stakes in Eagle Ford Midstream venture as they focus on shale oil production.
"Pioneer Natural Resources today announced that the company is pursuing the divestment of its 50.1% share of the Eagle Ford Shale Midstream business. Reliance Holding USA Inc owns the remaining 49.9% of the EFS Midstream business and also plans to pursue the divestment of its share in a joint process with Pioneer," the Dallas-based independent oil and gas producer said in a statement.
RIL, through its subsidiary Reliance Holding USA had acquired 49.9% stake in EFS Midstream in June 2010. Current investments in EFS Midstream LLC are $208 million.
The Midstream system consists of 10 gathering plants and about 460 miles of pipelines. The system gathers and separates produced condensate from produced gas. It also stabilises the condensate, where necessary, and treats the gas.
It is projected to generate $100 million in cash flow next year. Pioneer is the operator of the business.
The sale "would allow us to strategically redeploy capital to our core, oil-rich Spraberry/ Wolfcamp assets in the Permian Basin of West Texas," Pioneer Chairman and Chief Executive Scott Sheffield said in a statement.
Pioneer, however, said it has no plans to sell its stake in the Eagle Ford shale oil and gas producing assets.
The US firm holds 46% stake in the upstream venture where RIL has 45% and Newpek LLC the remaining 9%.
It is being speculated that RIL may be looking at selling this stake as well. RIL, which bought 45% interest in Pioneer Natural Resources Co's Eagle Ford shale formation of south Texas for $1.3 billion, is working with Citigroup Inc and Bank of America Merrill Lynch to find a buyer.
When the news of this stake sale came last month, its spokesperson had said, "Reliance constantly strives to identify means to create additional value for its shareholders" but declined to comment on the specific sale.
Prosecutors say Susan Xiao-Ping Su, founder and president of the phony Tri-Valley University was selling visa-related documents that allowed foreigners, mostly Indian nationals, to live in the US
A San Francisco woman has been sentenced to more than 16 years in prison for running what prosecutors say was a sham university that served as a front for an immigration scam.
Susan Xiao-Ping Su, founder and president of the phony Tri-Valley University, was also ordered during a hearing Friday to forfeit $5.6 million and pay more than $900,000 in restitution.
Federal prosecutors say Su was selling visa-related documents that allowed foreigners, mostly Indian nationals, to live in the US.
She was convicted in March of visa fraud and other charges. Multiple Tri-Valley employees testified that the school had no graduation or admission requirements and that Su instructed her staff to fabricate transcripts and other documents.
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