Mukesh Ambani of the prestigious Reliance Industries plans to buy a stake from Atlas Energy in the company, Marcellus Shale
Billionaire Mukesh Ambani is buying overseas assets in a major way. Reliance Industries, his flagship company is making major investments in shale gas in the United States. The company is reported to be willing to tie with Atlas Energy in a joint venture. The power games in shale gas are getting more complex by the day.
India has always been the dominant market of Reliance Industries and the company is trying very hard to reach new shores by expanding abroad. One of the ways the company aims to do this is by entering new businesses like gas and oil exploration, petrochemicals and refining oil. Billionaire Mukesh Ambani will get control of 40{3291cb1bf4fd73bca8d404e832e186cbc6f97ddc4c21a45f51320a1dbbde3932} of the share of Atlas operations in the lucrative Marcellus Shale. The Marcellus Shale is believed to be very lucrative and spans from New York to Pennsylvania. As per the information of some geologists, the gas may be enough to satisfy the demand of United States for 10 years.
Reliance Industries is not alone in buying shale rocks formations. Many companies from all over the world including Total, BP Plc, Mitsui and Co and Statoil have aggressively bid for shale gas stakes. Although gas from the shale rocks is lucrative, it is environmentally sensitive and quite costly. Independent oil companies who own the huge tracks of land has been benefited by joint ventures formed by foreign companies as they can use the capital for carrying out business activities.
The oil and gas analyst of angel Broking, Deepak Pareek told the media that Reliance Industries has invested very wisely as the shale gas may be a treasure trove in waiting. According to the financial expert, the company can look forward to good growth aspects and opportunities.
Mukesh Ambani, as per the data from Forbes Magazine is ranked number 4 in the ‘world’s richest men’. The net assets of Mukesh Ambani are said to be $29 billion. He has made it no secret that he plans to expand abroad in a big way. Having earmarked $2 billion for expansion, the company is keen on more acquisitions. The company however has tasted no real success in its foreign acquisitions so far. It was rejected by a Canadian company Value Creation for a majority stake of $2 billion. A bankrupt petrochemicals company named LyondellBasell also rejected the bid made by the company. Friday saw the share of Reliance head up by 1.8 percent, no small feat.