Sinopec signs JV with FTS International

Energy major Sinopec (0386.HKG; 600028.SHA) signed a joint venture agreement on Tuesday with US-based FTS International to develop China’s largely unexplored shale formations, Reuters reported, citing an FTSI company statement. The joint venture company, called SinoFTS Petroleum Services Ltd. will be 55% owned by state-owned Sinopec and 45% by FTSI. Stymied by the cost and complexity of tapping shale gas, China has turned to America’s expertise in hydraulic fracturing. The partnership will be the first oilfield services collaboration between a non-Chinese well-completion company and a Chinese national oil company.