Reliance Industries unit signs agreement with Pioneer Natural Resources to buy 45% interest in Eagle Ford Shale
Moneylife Digital Team 24 June 2010

Reliance Industries (RIL) said its subsidiary, Reliance Eagleford Upstream LP has signed definitive agreements to enter a joint venture with US-based Pioneer Natural Resources Company.

According to the agreement, Reliance will acquire a 45% interest in Pioneer's core Eagle Ford Shale acreage position in two separate transactions. Pioneer and Newpek LLC, Pioneer's current partner in Eagle Ford, will simultaneously convey 45% of their respective interests in Eagle Ford to Reliance Newpek.

Reliance Newpek currently owns around 16% non-operated interest in Pioneer’s core Eagle Ford Shale acreage. Following the transactions, Pioneer will own 46%, Reliance—45% and Newpek—9% of the joint venture interests, respectively.

Reliance will pay $1.315 billion for its implied share of 118,000 net acres.

On Thursday, Reliance Industries shares ended 0.69% down at Rs1,051 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.14% down at 17,730 points.

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