China's SPT Energy, Halliburton to Explore Tight Gas, Oil in China's Xinjiang

A recently formed joint venture between Halliburton and China’s SPT Energy would be looking to explore tight gas and oil in China's Xinjiang region, says news agency Reuters.

In April, SPT Energy’s subsidiary Petrotech (Xinjiang) Engineering and Halliburton established a joint venture, known as Xinjiang HTDT, to engage in fracture stimulation services in Xinjiang.

“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.

The registered capital of the joint venture is $34 million, of which Petrotech (Xinjiang) Engineering shall contribute $17.34 million and Halliburton shall contribute $16.66 million, representing 51% and 49% of the JV.

"Among the most geographically complicated regions in China, Xinjiang is rich in tight oil and tight gas resources," he told the news agency, adding that the model could be used in other regions.

In recent times, Chinese firms have been tying up with foreign oilfield services firm to explore unconventional hydrocarbons like tight oil and shale gas.

Earlier this year, state owned Sinopec formed joint venture with FTS International (FTSI), one of the largest well completion service companies in North America, and with Weatherford International, another large oilfield services company.