 "Reliance Industries plans stake sell in US shale business")
Reliance Holding USA Inc, a part of Reliance Industries Ltd (RIL), is planning to exit the Eagle Ford Shale Midstream (EFS Midstream) business in the US, after its joint venture partner - Pioneer Natural Resources Company - decided to sell its stake in the project. While Pioneer Natural Resources, is the operator of the business, owns 50.1 per cent stake in the EFS Midstream, Reliance Industries owns the remaining stake.
“The sale of EFS Midstream would allow us to strategically redeploy capital to our core, oil-rich Spraberry/Wolfcamp assets in the Permian Basin of West Texas, where we are successfully transforming the substantial resource potential we delineated in 2013 into strong production growth. We currently have no plans to divest our Eagle Ford Shale upstream assets. The sale of EFS Midstream is not expected to impact our ability to export processed Eagle Ford condensate,” said Scott Sheffield, Chairman and CEO, Pioneer Natural Resources Company, in a press release from Dallas (USA).
The EFS Midstream business was formed in 2010 to construct facilities to provide gathering and handling services for condensate and natural gas produced from wells on dedicated acreage in the Eagle Ford Shale. These services are provided for the Eagle Ford Shale upstream joint venture operated by Pioneer (Pioneer 46%, Reliance 45% and Newpek LLC 9%) and for various third parties.
The EFS Midstream system consists of 10 central gathering plants (CGPs) and approximately 460 miles of pipelines. The system gathers and separates produced condensate from produced gas. It also stabilizes the condensate, where necessary, and treats the gas. Pioneer’s cash flow from EFS Midstream is forecasted to be over $100 million in 2015.
“The sale of EFS Midstream would allow us to strategically redeploy capital to our core, oil-rich Spraberry/Wolfcamp assets in the Permian Basin of West Texas, where we are successfully transforming the substantial resource potential we delineated in 2013 into strong production growth. We currently have no plans to divest our Eagle Ford Shale upstream assets. The sale of EFS Midstream is not expected to impact our ability to export processed Eagle Ford condensate,” said Scott Sheffield, Chairman and CEO, Pioneer Natural Resources Company, in a press release from Dallas (USA).
The EFS Midstream business was formed in 2010 to construct facilities to provide gathering and handling services for condensate and natural gas produced from wells on dedicated acreage in the Eagle Ford Shale. These services are provided for the Eagle Ford Shale upstream joint venture operated by Pioneer (Pioneer 46%, Reliance 45% and Newpek LLC 9%) and for various third parties.
The EFS Midstream system consists of 10 central gathering plants (CGPs) and approximately 460 miles of pipelines. The system gathers and separates produced condensate from produced gas. It also stabilizes the condensate, where necessary, and treats the gas. Pioneer’s cash flow from EFS Midstream is forecasted to be over $100 million in 2015.