Energy major Reliance Industries is close to acquire 45 per cent stake in Eagle Ford shale gas field owned by the Pioneer Natural Resources for US $1.35 billion. The announcement is likely to take place after close of trade at NYSE on Tuesday.

In April, Reliance paid US $1.7 billion for a joint venture with Atlas Energy, which has a shale gas field on the borders of Pennsylvania, West Virginia and New York states. The deals by RIL follow similar agreements between some of the world’s largest energy companies and smaller independents with exposure to unconventional gas.

These unconventional deposits have raised estimates for US gas reserves from 30 years to 100 years at current usage rates. In the biggest deals, ExxonMobil has agreed  to pay US $41 billion  to buy XTO, while BP, Statoil and Total have each struck deals with Chesapeake Energy to tap into its US shale assets.

Reliance has been shopping for overseas acquisitions, resulting in the agreements with Atlas and Pioneer. Under the Pioneer deal, Reliance will pay US $300 million up front for the stake in the shale field and settle the balance over next four years. Both RIL and Pioneer declined to comment. In the Atlas Energy deal, the Indian company took a 40 per cent interest in the shale field owned by the US company and committed funds for development.

Dallas-based Pioneer said last month that it had drilled its fifth successful well in the Eagle Ford field.  Last month Pioneer had announced it is expecting to form a joint venture for further development of the gas field.                                                                                                                           Financial Times

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