Steel pipes maker Jindal SAW Ltd and US-based Hunting Energy Services on January 19 announced that they will set up a precision machine shop in a joint venture for an initial investment amount of up to $25 million (about Rs 175 crore)
As part of the deal, Jindal SAW will own 51 percent of the joint venture while Hunting Energy will own the remaining 49 percent.
Hunting and Jindal SAW will build a dedicated premium connection threading facility in Nashik by the end of 2022 over an area of 1,30,000 sqft with an annual capacity of 50,000 metric tonnes,
The facility will have three threading lines over time with an annual capacity of 50,000 metric tonnes. It is anticipated that the venture will employ approximately 100 staff members once fully operational and will achieve close to 70% incapacity in the second year of its operation.
Jindal SAW and Hunting Energy expects the potential annual market size for premium oil country tubular goods in India to be close to $ 200 million.
In this JV, Jindal SAW Ltd will bring its location-specific capabilities and leverage its expertise in mobilizing the workforce for the project. Hunting will provide its patented premium connection technology to thread premium connection on the full range of seamless tubing and casing used mainly in deep drilling activities in the oil and gas sector, the companies said in a press release.
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