Reliance and its partner Pioneer Natural Resources Co sold off Eagle Ford (EFS) Midstream venture, that owns a 460 miles pipeline network, to Enterprise Products Partners for USD 2.15 billion. Pioneers held 50.1 per cent interest.
"Under the terms of the definitive agreements, Enterprise will pay Reliance approximately USD 574 million in cash at closing and make the final payment of USD 499 million in cash on or before the first anniversary of the closing date," RIL said in a statement.
"Reliance's agreement to sell its interest in EFS is part of a joint transaction, wherein both Reliance and Pioneer have agreed to sell their entire respective holdings in EFS, for an aggregate consideration of USD 2.15 billion," it said.
EFS had debt of USD 170 million as on March 31, 2015, and hence RIL share of the first tranche proceeds will be reduced by around USD 85 million.
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The firm plans to use the proceeds from the sale of EFS for further development of its shale gas portfolio as well as repayment of some of its existing debt.
"In addition to the aggregate acquisition consideration being paid to Reliance and Pioneer proportionate to their respective ownership interests in EFS, Enterprise has agreed to spend USD 270 million over the next ten years on new facilities, connections and expansion projects," the statement said.
Enterprise in a statement said, "The purchase price will be paid in two installments with the first installment of USD 1.15 billion paid at closing and the final installment of USD 1 billion paid no later than the first anniversary of the closing date."