U.S.-based Halliburton has signed an agreement with a Chinese company for hydraulic fracturing in the oilfields in the Xinjiang area of China.
Halliburton inked the deal with an SPT Energy Group Inc. affiliate, Petrotech (Xinjiang) Engineering Co., Ltd., to establish a joint venture company focused on hydraulic fracturing and production enhancement services. The new company, Xinjiang HDTD Oilfield Services Co. Ltd., will provide fracture stimulation services, including design and analysis, data acquisition, and pumping and chemical services in the Xinjiang Uygur Autonomous Region. This is Halliburton's first joint venture for fracking services in China.
SPT Energy Group has reportedly provided oilfield technical services in Xinjiang's Tarim oilfield for 20 years, with a market share ranked first among privately-owned companies. Seventy-five percent of the market share in high-end completion services in the field was achieved through SPT's collaboration with Halliburton over the past seven years, and the market for horizontal drilling and fracturing services is increasing rapidly.
By 2025 the total barrels of oil equivalent in the Tarim oilfield is expected to be 50 million tons, while total BOE throughout Xinjiang province is expected to reach 100 million tons and account for up to one-third of China's BOE.
Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry.
Financial details including the capitalization and ownership breakdown for the Chinese joint venture were not immediately available from either company.
