BEIJING, July 10 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
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
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)