GAIL looks to sell its stake in US shale business

Mumbai: GAIL (India)'s US unit is close to selling its entire 20% stake in oil and gas assets at Eagle Ford shale basin in Texas, said executives aware of the development. The state-run gas distributor has received a few expressions of interest from US-based companies and is reviewing them, the executives said.

"GAIL is evaluating the few expressions of interest it has received and plans to complete the sale process by next month," one of the executives said, adding the company could garner about ₹100 crore from the deal, which it intends to complete this month.

GAIL didn't respond to an email query. The Eagle Ford shale basin had been witnessing declining output for the past few years.


Also read | Cough syrup bottles may soon carry a warning label in 'red'

GAIL Global (USA) (GGUI), its wholly owned unit, had floated a tender last February to sell its entire 20% non-operated working interest in oil and gas assets in the Eagle Ford shale basin. The assets comprise interests in 91 oil and gas wells and 13 identified proved undeveloped locations, covering 2,870 net acres in La Salle and Frio counties.

Also read | Dubai hotels filling up again but rates yet to recover

GAIL entered the US shale gas sector in September 2011, taking a 20% interest in Carrizo Oil & Gas' Eagle Ford acreage for $95 million. The investment comprised an upfront cash payment of $63.7 million and a $31.3 million carry linked to future drilling and development costs. The proposed exit follows similar moves by other Indian energy companies like RIL, which sold its remaining Eagle Ford shale assets in 2021, exiting its decade-long US shale gas business. RIL had earlier offloaded its stake in the Marcellus shale blocks.