State-run gas utility GAIL has become the first public sector entity and the second Indian firm after Mukesh Ambani's RIL to acquire shale gas assets abroad.GAIL India on 29 September 2011 announced a deal with USbased Carrizo Oil & Gas Inc for acquiring a 20% interest in the latter’s Eagle Ford Shale acreage.
The deal will involve an estimated investment of $300 million over the next five years. This includes an upfront cash payment of $63.7 million and a carry amount of $31.3 million linked to Carrizo's future drilling and development costs.
GAIL will make the acquisition through its wholly owned US subsidiary, GAIL Global (USA), formed on 26 September 2011. The subsidiary will fund a major part of the investments in Eagle Ford Shale out of its earnings.GAIL India, the country’s largest marketer and transporter of natural gas, became the first government-owned energy company to get a foothold in the US market.
Related Facts
GAIL India chairman and managing director is B C Tripathi
Today in history
| 30-September-1989 | INS Shalki, India's first indigenously built submarine, launched in Bombay. |
| 30-September-1997 | 24th Stock Exchange of India set up at Trivandrum. |
