FTS International (FTSI) has signed a 15-year joint venture agreement with the Sinopec Group, according to which the firms’ hydraulic stimulation capabilities and expertise will be used to tap China’s unconventional energy resources.
The new joint venture company, to be called SinoFTS Petroleum Services Ltd. (SinoFTS), will be owned 55% by Sinopec and 45% by FTSI, one of the biggest well completion service companies in North America. The JV will create hundreds of energy related jobs.
SinoFTS is the first oilfield services collaboration of its kind between a non-Chinese and a Chinese firems.
FTSI will provide Sinopec with its expertise in hydraulic fracturing, using new equipment that FTSI will manufacture in the US and then use it on the Chinese grounds.
FTSI representative said: “As Sinopec leads the development of China’s unconventional oil and gas resources, estimated as the world’s largest, this joint venture will create a China-centric well completion company with industry-leading capabilities. The joint venture marks a major milestone in the development of China’s shale resources, the collaboration between Chinese and U.S. companies, and FTSI’s international expansion plans.”
The initial focus will be made on the Sichuan basin, most promising area in terms of resource abundance.
Operations for the initial fleet are set to begin in 2015, and additional pressure pumping fleets will be distributed in basins throughout China.
Photo Source: Natural Gas Asia