MUMBAI (Commodity Online): India’s largest conglomerate, Reliance Industries Ltd (BOM:500325) is considering a joint venture with Atlas Energy to develop the US firm’s Marcellus Shale gas operations.

Independent oil and gas company Atlas is looking for a partner for its operations in the booming Marcellus Shale in the eastern United States, which could bring in USD 1 billion or more for the firm.

Reliance, India's largest listed firm, is eyeing a deal in trying to gain a foothold outside India, as it attempts to break into new markets and expand its various businesses including refining, oil and gas exploration and petrochemicals.



The Marcellus Shale, which spans parts of Pennsylvania, West Virginia and New York, could hold enough natural gas to satisfy U.S. demand for a decade, according to some geologists. "The sentiment is that the U.S. has a wall of gas that can be drilled at very low prices," said Brian Lively, vice president of exploration and production research at Tudor Pickering Holt & Co. in Houston.

Atlas' core Marcellus position consists of 266,000 acres largely in southwestern Pennsylvania. Bidders for the Atlas position should include large international integrated oil and gas companies as well as domestic independent oil and gas companies. Reliance Industries would be joining British, French, Japanese and Canadian rivals in investing in U.S. reserves trapped in rocks that until five years ago were considered too hard to be worth drilling.

Reliance Industries has raised about USD 2 billion selling shares since September and the funds may be used for capital expenditure, Chief Financial Officer Alok Agarwal had said in January this year.


(Courtesy: IndiaPRWire)

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