Indian conglomerate Reliance Industries’ subsidiary Reliance Marcellus II has signed agreements to sell all of its interest in shale gas assets in north-eastern and central Pennsylvania, US, to Kalnin Ventures’ affiliate BKV Chelsea for $126m.

Reliance will sell its 60% interest in the assets, which are currently operated by Carrizo Oil & Gas.

The interest was acquired by the company in 2010 for $392m, with the remaining 40% interest retained by Carrizo.

Under the current sale, which comprises assets located in Susquehanna, Wyoming and Clearfield Counties, the company is expected to receive contingent payments of up to $11.25m subject to natural gas prices breaching certain thresholds over the next three years.

Reliance Holding USA president and CEO Walter Van de Vijver said: “This transaction represents an opportunistic sale of developed upstream Marcellus assets and ends a successful partnership of seven years with Carrizo in a joint sale. We will continue to actively manage the remainder of our US shale resources.”

“This transaction represents an opportunistic sale of developed upstream Marcellus assets and ends a successful partnership of seven years with Carrizo in a joint sale.”

An affiliate of Kalnin has separately reached an agreement to acquire Carrizo’s interest in the assets jointly held with Reliance, which comprises interests in 112 wells, including 98 producing wells, 11 drilled and uncompleted (DUC) wells and three wells that are currently abandoned.

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The total value of the acquisition is around $210m.

Kalnin Ventures managing director and co-founder Christopher Kalnin said: “This deal is unique from our previous four in that it provides us the opportunity to naturally expand into an operator position while also acquiring additional midstream assets.”

Reliance will continue its upstream operations in the US through its non-operated position with Chevron in the Marcellus shale play in south-western Pennsylvania.

In addition, the company has interest in the Eagle Ford play through its non-operated position with Pioneer in Texas.