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Aramco, CNOOC eye $2.2bn Frac Tech stake

Hong Kong, December 14, 2011

Saudi Aramco, China Petroleum & Chemical Corp (Sinopec) and CNOOC are in talks to buy up to 30 per cent stake in North American oil and gas services company Frac Tech International in a deal worth about $2.2 billion.

Frac Tech has hired a bank to advise on the deal, the sources told Reuters, declining to be named because the discussions were private.

They added that Frac Tech was also in advanced talks with Saudi Aramco, Repsol-YPF SA and Sinopec to establish three separate fracking joint ventures in the Middle East, Argentina and China.

Frac Tech, which helps exploration and production companies perform "frac" jobs and also produces equipment and materials, is also in early talks with three or four parties in Poland to establish a similar joint venture.

The company planned to close the deals by the end of February, the sources said, ahead of a planned initial public offering targeted to raise about $1.15 billion.

Sinopec and CNOOC declined to comment.

Other companies mentioned in this report either declined comment or could not be immediately reached. – Reuters

Tags: aramco | Hong Kong | Stake | CNOOC | Frac Tech |

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