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Reliance sells Texas shale assets for $100 million

FILE PHOTO: A bird flies past a Reliance Industries logo installed on its mart in Ahmedabad, India January 16, 2017. REUTERS/Amit Dave/File Photo

(Reuters) - Reliance Industries Ltd said on Tuesday its unit would sell some of its shale assets in the United States to privately held Sundance Energy Inc for $100 million, as the Indian oil-to-telecom conglomerate moves closer to exit U.S. shale investments.

The sale includes Reliance’s interest in the assets in the Eagle Ford shale in Texas, it said in a statement.

U.S.-based Pioneer Natural Resources Co, which was a partner in the asset, also exited the blocks.

In November 2014, Reliance and Pioneer announced exiting their stake in shale oil and gas transportation and distribution joint venture, which analysts had said was a precursor to Reliance’s move to exit U.S. shale operations.

The deal, which is expected to close in the first quarter of fiscal 2019, is the second such sale by the Mukesh Ambani-backed Reliance in the United States.

In October, the Reliance sold a similar asset block in the Marcellus shale region in northeastern and central Pennsylvania.

Reporting by Krishna V Kurup in Bengaluru and Promit Mukherjee in Mumbai; Editing by Amrutha Gayathri