State-run Oil India, nation’s second largest explorer, is in advanced stages of discussion with Carrizo Oil and Gas Inc to acquire stake in Niobrara Shale in North Eastern Colorado.
This buy will make Oil India third such player to hold shale gas acreages in the US. Persons aware of the development said two Indian companies– Oil India and GAIL had bid for stake in the shale plays. A Chinese private equity player was also in race for the same.
A senior Oil India executive said, “We are in advanced stage of discussions and will be announcing the deal soon.” He did not give details of the deal. Given shale gas prices in the US have slumped due to increase in production in recent years, analysts said the price at which Oil India enters the shale gas play, is important. Houston-based Carrizo Oil & Gas Inc is an independent energy company engaged in shale plays in the US and UK. Its operations span across— the Barnett, Eagle Ford, Marcellus and Niobrara shale plays.
“Carrizo is in discussions with a number of companies concerning the formation of various structures of business relationships, acquisitions, and divestitures, involving a variety of oil and gas assets as a normal course of business. These discussions, prior to the announcement of a formal agreement, are confidential between the parties,” said Richard Hunter, Vice President, Investor Relations, Carrizo Oil & Gas in a email.
Comment from Rockpick: I wonder if Oil India is interested in any of the 500,000 acres being sold by Chesapeake Energy?