Will Reliance Industries pull out of its shale gas joint venture with Atlas Energy? Alternatively, will it make a higher offer than Chevron's $4.3-billion offer made last November to acquire Atlas? These are the questions that have been doing the rounds in oil industry circles since the time RIL sent a missive to Atlas on why it was kept in the dark on the sale to Chevron.

“What is puzzling is why it took Reliance nearly three months to react to the Chevron deal. One would have expected something in November itself when the agreement was sealed,” an oil sector executive said.

Last April, RIL picked up a 40 per cent stake in the Marcellus shale joint venture with Atlas for $1.7 billion. It also agreed to fund 75 per cent of the operator's drilling costs up to $1.4 billion. Chevron will now step into the 60 per cent slot occupied by Atlas at a time when RIL believes it should have been given the first right of refusal for the buyout.

Chevron held 5 per cent in (the then) Reliance Petroleum between 2006 and 2009. It had the option of increasing it to 29 per cent but chose to exit instead. The two former allies could now end up being part of the Marcellus share alliance except that Chevron will be in the driver's seat.

“It eventually boils down to leadership stakes. RIL has big plans as a global energy player and may not want to play second fiddle to another company at this point,” an oil industry veteran said.

The company has two other shale gas joint ventures in the US. One is with Carrizo Oil and Gas Inc (where it has a 60 per cent stake) and the other with Pioneer Natural Resources. However, sources say the Atlas alliance is significant from the viewpoint of its sheer size, estimated at over 50 million acres.

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