JINDAL SAW Ltd., leaders in pipe manufacturing industry, held a press conference detailing the formation of a new Joint venture with Hunting Energy Services, global leader in developing premium connection solutions, to set up the first ‘State-Of-the-Art’ Premium OCTG Threading Plant in India, at Nashik in a 51%:49% partnership with Jindal SAW Ltd. as a majority shareholder. The initial investment in this joint venture will be around US$ 20-25 million and the potential annual market size for Premium OCTG in India is close to US$ 200 million.
This joint venture would open the doors of premium connection for OCTG from India to various parts of the world with the Middle East in particular and act as import substitution for players in Oil and Gas drilling activities.
The geographical location and proximity to the MENA region is an advantage compared to other mills and the joint venture will capitalise on the inroads that JSAW and Hunting have already made in the MENA region. In this joint venture, Jindal SAW Ltd will bring its location-specific capabilities and leverage its expertise in mobilizing the workforce for the project. In addition, Hunting will provide its patented premium connection technology to thread premium connection on full range of seamless tubing and casing used mainly in deep drilling activities in the oil and gas sector. This joint venture will become the first in line to have a state-of-the-art premium connection threading facility offering the widest range capabilities in OCTG solutions in India.
Under the terms of the joint venture agreement, Hunting and Jindal will build a dedicated premium connection threading facility in Nashik province near Jindal’s existing steel mill operations, with a proposed 130,000 sq. ft. manufacturing footprint.