The U.S. company Halliburton announced on Friday that it has entered into an agreement with Petrotech (Xinjiang) Engineering Co., an affiliate of the Chinese company SPT Energy Group Inc. for the joint provision of services in the shale exploration and production in China.
Under the agreement a new joint venture company HDTD Oilfield Services Ltd. was established. The activities of this entity will focus on the performance of hydraulic fracturing and production enhancement services. The company will provide fracture stimulation services, including design and analysis, data acquisition, and pumping and chemical services in the Chinese Xinjiang Uyghur Autonomous Region.
For Halliburton this is the first joint venture for the provision of hydraulic fracturing services in China, although the two companies have worked together for the last seven years.
“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,” the Texas-based company said.
SPT Energy Group has extensive experience in performing technical work for oil corporations having provided oilfield technical services in Xinjiang’s Tarim oilfield for twenty years.
“Halliburton looks forward to strengthening our partnership with SPT Energy Group by bringing a suite of integrated, comprehensive solutions to the challenge of developing China’s unconventional reservoirs. Our basin-specific knowledge, industry-leading technologies and expert people have solved unconventional challenges around the world, and we are excited about growing our presence in China.” Halliburton Chairman, President and CEO Dave Lesar said in a statement on the company website.
David Zeng, Halliburton’s vice president for China said, “Over the next decade there will be great opportunities from the parallel development of conventional and unconventional resources in China. SPT’s strong client relationships combined with Halliburton’s technical expertise positions Xinjiang HDTD to be the leading service provider as we develop westward.”
By 2025 the total barrels of oil equivalent (BOE) 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.
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