GAIL Actively Pursuing Shale-Gas Assets in North America -Executive
06/07/2012| 12:36am US/Eastern
By Gurdeep Singh
KUALA LUMPUR--State-run gas distributor GAIL (India) Ltd. (532155.BY) has set aside $1 billion for potential asset acquisitions and is actively looking to buy shale-gas assets in North America, a senior company executive said Thursday.
"We are now looking at larger assets in the U.S. and Canada," Marketing Director Prabhat Singh told a conference.
Last year, the company bought a 20% stake in a U.S. shale-gas asset, its first such purchase, as the state-run utility sought to gain expertise in an increasingly important fuel source ahead of India's plans to auction shale-gas blocks by the end of 2013.
GAIL paid $95 million for the stake in Houston-based Carrizo Oil & Gas Inc.'s (CRZO) Eagle Shale Ford acreage via wholly owned unit GAIL Global (USA) Inc. The amount comprised an upfront cash payment of $63.7 million and $31.3 million linked to Carrizo's future drilling and development costs.
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