Sino Oil and Gas Holdings to Form Oil, Gas JV with Canadian Firm

Sino Oil and Gas Holdings Limited has entered into a memorandum of understanding (MOU) with a Canadian-based oil and gas company for a potential joint venture. The joint venture will be involved in providing oil and gas services in China, with a focus on the natural gas sector, including conventional gas and unconventional gas.

As per the agreement, the JV will be owned 60% by Sino Oil and Gas Holdings and 40% by the Canadian partner. The JV will participate in the Sino’s existing coalbed methane (CBM) project in Sanjiao and will also explore the opportunities in participating in other oil and gas projects in the market.

The Canadian firm, whose identity has not been disclosed,  is engaged in the provision of oil and gas field development technical services in Canada.

Sino Oil and Gas Holdings Chief Executive Officer Mr. Xu Zucheng said: "Our Sanjiao CBM block, located in the Erdos Basin which is a relatively complex geological environment, has more sophisticated demand for advanced development technologies, especially for horizontal well drilling. We therefore see a niche and necessity to build up our own oil and gas service team and introduce more advanced technology to serve the operation of the Sanjiao Block as well as other oil and gas blocks in the market. The Proposed JV will not only increase the efficiency and effectiveness of our own operation in Sanjiao but also has the potential to grow into a new revenue driver for the Group in long run."