S-based Hunting Energy
Services (Hunting) will set up a precision machine shop in a joint venture with
homegrown steel pipes maker Jindal SAW at
an initial investment amount of up to US$ 25 million (about Rs.175 crore).
Addressing a
virtual conference, Hunting PLC CEO Jim Johnson said
it will be India's first state-of-the-art premium OCTG threading
plant, which will be set up in Nashik,
Maharashtra.
While Jindal SAW will
hold a 51 per cent stake in the JV, Hunting Energy
will own the remaining 49 per cent.
The aim is
to set up a world-class, state-of-the-art precision machine shop in India to
thread premium connections for oil country tubular goods (OCTG), including
accessories for markets across the globe, Jindal SAW had
earlier said while announcing the JV plans with Hunting. Johnson said
the Indian OCTG market
provides significant growth potential for Hunting.
''We are
delighted to have entered this joint venture agreement with Jindal SAW Ltd,
leveraging our excellent working relationship since 2019. The initial
investment in this JV will be around USD 20-25 million and the potential annual
market size for Premium OCTG in India is
close to USD 200 million''.
Under the
terms of the joint venture agreement, Hunting and Jindal SAW will
build a dedicated premium connection threading facility in Nashik over
an area of 1,30,000 sqft with an annual capacity of 50,000 metric tons.
Both Hunting and Jindal SAW expect
the facility to be operational by the end of 2022.
Neeraj Kumar, Global Chief
Executive Officer (GCEO) and Whole Time
Director (WTD), Jindal SAW Ltd
said, ''We are glad to join hands with Hunting Energy
Services for this ground-breaking project. Our collective efforts and combined
strengths will revolutionise the OCTG manufacturing
sector and its usage in the domestic market”. “Together with Hunting,
we will become the first in line to have such a manufacturing facility in
India. This JV will add value to our existing line of products and will develop
the local ancillary service industry.''
Jindal SAW is
a manufacturer and supplier of steel pipe products, fittings and accessories
with manufacturing facilities in India,
the US, Europe and the UAE.
Hunting Energy Services manufactures premium, high-end downhole metal
tools and components required to extract hydrocarbons across the well
construction, completion and intervention stages of the well's lifecycle.