Oil India May Buy Stake in US Shale Gas Play

Oil India Ltd may acquire around 25% stake in a US firm’s shale gas acreage in order to gain expertise in the segment that may become significant and lucrative in India.

 “The acreage is near Eagle Ford (Texas),” chairman and managing director N.M. Borah said.

The company will likely have to shell out around $200 million for the 25% stake, Mint newspaper reported Monday.

“We plan to acquire around 25% stake that will require an investment of around $200 million. We plan to acquire a stake in the acreage and not in the company,” a company executive said. “We have identified a listed company and the due diligence is on.”