Oil India Close to Acquiring Stake in US Shale Asset

State-run Oil India is in advanced stages of discussion with Carrizo Oil and Gas to acquire stake in Niobrara Shale in North Eastern Colorado.

Business Standard reported that Oil India and GAIL had bid for stake in the shale plays. A Chinese private equity player was also in race for the same. The newspaper also said that the deal would be announced soon.

GAIL, India's biggest gas transportation firm, acquired 20% stake at Carrizo’s Eagle Ford shale acreage in south Texas last September.

The acquisition was GAIL's first shale gas asset in the US with an investment of $95 million. Gail and its partners are expected to invest up to $300m in total over the next five years at the field. Gail acquired stake through its wholly owned subsidiary GAIL Global (USA) Inc.

Similarly, Mukesh Ambani promoted Reliance Industries (RIL) holds 45% stake in Eagle Ford and 60% stake in a Marcellus shale gasfield through a joint venture with Carrizo.