Reliance announces $1.3 billion Shale deal: Baker Botts,Vinson & Elkins and Thompson & Knight advise
Mukesh Ambani’s Reliance Industries has agreed to pay Pioneer Natural Resources Co. and its partner Newpek LLC a sum amounting to $1.3 billion for a 45 percent stake in its Eagle Ford shale formation. In the Joint Venture (JV) Company, RIL will hold 45 percent stake with Pioneer at 46 percent and Newpek at 9 percent.comments powered by Disqus
RIL was advised by Baker Botts on the agreement with Pioneer. Hugh Tucker, Head of the firm's oil and gas practice, along with Partner George Goolsby, Corporate Partner Joe Poff, Tax Chair Gregory Nelson, Tax Partner Renn Neilson, Environmental Partner Aileen Hooks, and Project Finance Partner Martin Toulouse.
Pioneer was advised by Vinson & Elkins on the sale. M & A and Project Finance Partner David Cohen led the team along with M & A Partners Michael Wortley, A. Winston Oxley and Rodney Moore. Energy M & A Partner John Connally IV and Project Finance Partner Christopher Dawe were also part of the team.
Reliance will pay $266 million to Pioneer upon the deal's closing and will provide another $879 million to fund Pioneer's future drilling costs. Reliance will separately pay approximately $210 million to Newpek, Pioneer's partner in the Eagle Ford shale formation and a unit of Mexican conglomerate Alfa SAB.