RIL subsidiary signs agreement with Ensign to sell assets in Eagleford shale play of Texas

Reliance Industries Ltd (RIL) on Monday said its step-down subsidiary Reliance Eagleford Upstream Holding, LP (REUHLP) has signed an agreement with Ensign Operating III, LLC for sale of its upstream assets in the Eagleford shale play of Texas in US.

The purchase and sale agreement between REUHLP and Ensign, a Delaware limited liability company, was signed on November 5, RIL said in a release.

"With this transaction, Reliance has divested all its shale gas assets and has exited from the shale gas business in North America," it added.

The sale is at a consideration higher than current carrying value of the assets, the Mukesh Ambani-led company said. However, it didn't disclose the transaction value.

Citigroup Global Markets, Inc. acted as a financial advisor to RIL for the transaction and Gibson, Dunn & Crutcher LLP served as its legal counsel.