Oil India exits US shale venture, sells 20% stake for $25 mn

State-owned Ltd (OIL) has exited from a US shale oil venture, selling its 20 per cent stake to its venture partner for $25 million — the second exit of an Indian firm from the US shale business in two months.

“Oil India (USA) Inc (wholly owned subsidiary of OIL), divested its entire stake in Niobrara shale asset, USA,” a regulatory filing by the company said, adding the consideration received was $25 million.

OIL and Indian Oil Corporation (IOC) had together in October 2012 bought a 30 per cent stake in Houston-based Carrizo Oil & Gas’s Niobrara shale asset in Colorado for $82.5 million.

While OIL had acquired 20 per cent, IOC bought 10 per cent in Carrizo’s Niobrara basin acreage assets through their respective subsidiaries.