Dalian: Shenzhen-listed Jereh announced that the company has decided to jointly set up an offshore engineering venture with Shanghai Fengyang Offshore Engineering to develop its offshore oil and gas equipment business.
The two companies will totally invest RMB60m in the new jv, made up of RMB30.6m from Jereh and RMB29.4m from Shanghai Fengyang.
When the deal is completed, Jereh will hold 51% shares of the new jv and Shanghai Fengyang will hold the remainder.
The company believes the move into the offshore engineering equipment sector will bring substantial benefits to the company as China is accelerating the development of offshore oil and gas.
Jereh provides integrated solutions of oilfield equipment and services for oil and gas drilling, well intervention, well completion, natural gas transportation and natural gas liquefaction. [03/12/14]