BEIJING, July 10 (Reuters) - A newly formed oil service joint venture between a private Chinese firm and U.S. oil service giant Halliburton Co plans to focus on tapping tight oil and gas reserves in China’s remote western region of Xinjiang.
China is stepping up development of more difficult-to-extract resources including tight oil and shale gas, leading more local firms to seek alliances with global oilfield service companies with high-end drilling technology and experience.
The latest venture between Halliburton and China’s SPT Energy, known as Xinjiang HTDT, joins similar tie-ups between U.S.-listed Weatherford and China’s Sinopec Group and U.S. fracking giant FTS International with Sinopec.
SPT has 20 years experience operating in Xinjiang while Halliburton would contribute its expertise in enhancing oil recovery using fracturing technology,” Sun Xiaogang, SPT’s chief financial officer, told Reuters.
“Among the most geographically complicated regions in China, Xinjiang is rich in tight oil and tight gas resources,” he said, adding that the model could be used in other regions.
SPT will hold 51 percent and Halliburton 49 percent of the new entity, which will have registered capital of $34 million and commit to a total investment of $100 million, Sun said.
The venture was first announced in April. (Reporting by Chen Aizhu; Editing by Richard Pullin)