19 August 2014, News Wires – India’s Reliance Industries is reportedly preparing to splash $2 billion on its three shale assets in the US.
Indian business newspaper Mint cited unnamed sources familiar with the plan as saying Reliance had now firmed up the new investments in the three joint ventures it has in the US.
It reported that most of the funds would would be directed towards operations in the Marcellus shale, in the eastern part of the US, where Reliance has has agreements with Chevron and Carrizo Oil & Gas.
“In the JVs with Pioneer and Carrizo, the business has already turned profitable and cash flows from the business are enough to fund the incremental capex there. Therefore, the new capex is meant for the stake with Chevron,” Mint cited one of its sources as saying.
The Indian company has already invested $7.3 billion since 2010 towards shale developments in the US, according to Mint.
Over the second quarter of the year, revenue from Reliance’s shale operations rose 26%, to $270 million, and operating profits from the segment increased 22%, year-on-year, to $201 million.