The deal involves an upfront payment of $266 million to Pioneer and deferred payments of $1.05 billion by Reliance towards capital expenditure, over a period of four years.
The deferred amount comprises payment of $879 million to Pioneer and $210 to smaller partner Newpek.
In addition to funding its own drilling costs, Reliance will fund 75% of Pioneer’s portion of drilling costs until the $879 million of spending is completed.
A
