Honghua Group, Baker Hughes to Work Together in Chinese Shale Space

Honghua Group Limited has signed a Memorandum of Understanding (MOU) with Baker Hughes, to jointly provide integrated operation services and carry out research and sub-surface evaluation and engineering services for non-conventional oil and gas opportunities in the China.

The two companies will jointly set up a research center for unconventional energy in Chengdu, Sichuan Province, China, which will be principally engaged in conducting shale oil and gas related research and consultancy services to support shale oil and gas development.

Per the MOU, the two companies will invest in the development and testing of technologies and solutions that are applicable to China’s unconventional hydrocarbons market. In addition, Honghua China and Baker Hughes Beijing, the subsidiaries of Honghua Group and Baker Hughes respectively, have agreed to start collaboration in the testing of 6,000 horsepower fracturing pump and sub-surface smart control system for coiled tubing drilling rig.