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India

Reliance's unit to sell Marcellus shale assets for $250 million

FILE PHOTO: Labourers rest in front of an advertisement of Reliance Industries Limited at a construction site in Mumbai, India, March 2, 2016. REUTERS/Shailesh Andrade/File Photo

BENGALURU (Reuters) - Reliance Industries Ltd said on Thursday its unit will sell its interest in certain upstream assets in the Marcellus shale in the United States for $250 million in cash to Northern Oil and Gas Inc.

The assets, currently operated by various affiliates of EQT Corp, will be sold for the cash consideration and warrants, that will allow for the purchase of 3.25 million common shares of NOG at an exercise price of $14 per common share over the next seven years, Reliance said.

In 2017 Reliance sold a shale oil and gas block in the Marcellus shale in northeastern and central Pennsylvania for $126 million.

Reliance, led by billionaire Mukesh Ambani, has been diversifying away from its mainstay energy arm to consumer-facing businesses in recent years.

Reporting by Nallur Sethuraman in Bengaluru; Editing by Shounak Dasgupta

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