RIL Says US Shale Business Profitable Despite Low Gas Prices
Reliance Industries’ investment in shale gas businesses in the US has begun to generate returns. The company has invested close to $3.5 billion in the sector.
The shale gas revenue in fourth quarter stood at $250 million, while profit after tax stood at $30 million and Ebitda stood at $200 million, Business Standard said.
Management has indicated that despite low gas prices in the US, shale gas business is profitable due to higher liquid production at 43 per cent, Business Standard said citing a Mumbai based analyst.
The company has seen a seven-fold increase, in its share of gross production on a year-on-year basis. Its joint venture with Pioneer, at present, is operating with 12 rigs. The company drilled 32 wells last quarter.
RIL's Chevron joint venture, at present, is operating with five rigs with gross production rate of 2.3 mscmd, of which RIL's share stands at 0.9 mscmd. The field's gross capex was $178 million during the quarter.
RIL began gas production from its Carrizo JV in the third quarter. However, it is cautious over development related activities due to low gas prices. Capex of the field stood at $73 million during the quarter with cumulative investments of $590 million so far.