Oil India eyes $200 mln shale gas buy in U.S.-report

Mon Jan 16, 2012 3:11am GMT
 

Jan 16 (Reuters) - Oil India Ltd is in talks to buy a 25 percent stake in shale gas acreage owned by a U.S.-listed company in a deal worth around $200 million, the Mint newspaper reported on Monday citing executives at the state-run refiner.

"The acreage is near Eagle Ford (Texas)," OIL Chairman and Managing Director N.M. Borah was reported as saying.

"The proposal is being studied," added Borah, who declined to name the U.S. company as the deal had not been closed.

An unnamed second executive told the newspaper that OIL was conducting due diligence of the U.S. company.

A spokesperson at OIL could not be immediately reached for comment by Reuters.

The United States is the world's top producer of shale gas, a natural gas locked in rock formations considered a top source of future energy.

Indian oil and gas major Reliance Industries Ltd has spent $3.44 billion on three U.S. shale gas assets, while state-run GAIL India Ltd bought a 20 percent stake in shale acreage for $63.7 million last year, the report said.

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