Today, most financial newspapers have reported on state-owned GAIL acquiring a 20 percent stake in the US-based Carrizo Oil and Gas’ Eagle Ford shale acreage. The deal involves an upfront cash payment of $64 million to Carrizo, with the overall investment valued at around $300 million over the next five years.
The acquisition is a clear attempt to gain expertise in an energy segment that might soon become very significant for India over the next few years. It marks GAIL’s first shale gas asset acquisition and follows billion-dollar-plus purchases by Reliance Industries to gain similar energy assets abroad as well. So, why are companies interested in acquiring shale gas assets? Here’s a quick primer on this unconventional energy source and why it is becoming important for India’s energy companies.
Source: First Post
For Shale News or Shale Investments
No comments:
Post a Comment