Fort Worth's FTS International, Sinopec announce JV agreementJune 10, 2014
A. Lee Graham
FTS International Inc. of Fort Worth and Sinopec Group have entered into a 15-year joint venture agreement culminating a multi-year effort by both companies to bring FTSI’s hydraulic stimulation capabilities to China.
Upon incorporation in China, the joint venture company, SinoFTS Petroleum Services Ltd. (SinoFTS), will be owned 55 percent by Sinopec and 45 percent by FTSI.
SinoFTS marks a first-of-its-kind oilfield services collaboration between a non-Chinese well-completion company and a Chinese national oil company. SinoFTS will serve both Sinopec and other exploration and production companies throughout China.
“We are very excited to begin this joint venture with such an esteemed partner,” said Greg Lanham, FTSI CEO, commenting in a news release.
“China has vast untapped shale gas resources, and we’re eager to play a role in their development,” Lanham said.
With Sinopec developing China’s unconventional oil and gas resources, the newly announced joint venture is expected to create a China-centric well completion company with industry-leading capabilities.
Under the agreement, SinoFTS will use new equipment that FTSI will custom-manufacture in the United States, featuring the latest innovations and adapted to the specific requirements of the Chinese environment.
As the largest pressure pumping company created during the U.S. shale renaissance, FTSI is said it is well positioned to collaborate with Sinopec in developing China’s onshore pressure pumping industry.
The collaborative endeavor will initially focus on the Sichuan basin, considered China’s most promising shale play, providing services under a long-term, dedicated contract. Operations for the initial fleet are expected to begin in 2015, with further deployments of pressure-pumping fleets expected in basins throughout China. SinoFTS will be headquartered in Beijing and managed by industry experts from both FTSI and Sinopec.
FTS International provides well-completion services, including pressure pumping and wireline. More information is available at www.ftsi.com.