Reliance Industries Looking To Acquire Canadian Shale Gas Assets

Mukesh Ambani led Reliance Industries Limited (RIL) is eyeing shale gas assets in the resource-rich regions of Canada, after having successfully acquired and developed similar shale gas assets in Pennsylvania and Texas in the U.S. last year. Encana Corp. (Canadas biggest natural-gas producer) and Cenovus Energy Inc (Canadas fifth-largest energy company) are two Canadian companies looking for partners to successfully develop their oil and gas resources. Both these companies, at present, are in talks with leading Asian and European energy companies to put together a mutually beneficial partnership for developing Canadas rich shale gas reserves. RIL, one of the top prospects, is presently studying Canadian shale gas assets and evaluating the possibility of likely partnership with its energy firms.
Reliance Industries has inked joint ventures with US based Chevron (RIL- Chevron), Carrizo (RIL- Carrizo) and Pioneer (RIL-Pioneer). Acquisition of shale gas assets has been a significant venture for RIL this fiscal year, and in hopes of transforming itself into a global oil and gas developing enterprise in the coming years, Reliance is on the lookout for additional global opportunities and for extending a hand of partnership to leading oil and gas developing firms of the world. By adding reserves of natural gas trapped in overseas shale gas assets, Reliance will be able to add to its domestic fuel output substantially.
After having encountered the highest ever financial performance results for the quarter ending June 30th, earnings from RILs refining business helped the conglomerate assume a 16.7% rise in net profits and $16 billion in cash reserves. RIL is expected to invest a part of this cash reserves into developing additional clean energy ventures. Also, Reliance has been Indias most acquisitive company in terms of number of deals last year, and the company is expected to expand further by engaging in additional M&A opportunities. RIL has roped in NavinWadhwani from Rothschild to head the M&A division of the group and the company also plans to bring in Tony Fountain, ex-CEO of the U.K. Nuclear Decommissioning Authority to head its refining and marketing division.