Homegrown Jindal SAW on Monday inaugurated a USD 25-million facility set up in joint venture with US-based Hunting Energy Services in Maharashtra.
In 2019, pipe-maker Jindal Saw had partnered with Hunting to source its patented connections technology to manufacture finished seamless casing and tubing in India.
As part of the partnership, the joint venture (JV) company Jindal Hunting Energy Services Ltd (JHESL) has invested over USD 25 million to set up a Oil Country Tubular Goods (OCTG) threading plant in Nashik, Neeraj Kumar, Group Chief Executive Officer and Whole-Time Director, Jindal SAW Ltd told PTI in an interaction.
JHESL plant is the only facility in India to manufacture and supply pipes and tubes with premium connections to OCTG market in oil and gas sector in India, he said, adding the annual capacity of the plant is 70,000 metric tonnes.
On the rationale behind the move, Kumar said the investment provides a huge business opportunity in the domestic market at present. India imports USD million worth of OTGC products.
The domestic players operating in the oil & gas sector will be able to get domestically manufactured products at a competitive price, the company official added.
While Jindal SAW will hold a 51 per cent stake in the JV, Hunting Energy will own the remaining 49 per cent.
"With this initiative the group will be able to participate in the AatmaNirbhar initiative of the government. The state of art facility will provide world class products to the players who were dependent on imports," P R Jindal, the Chairman of Jindal SAW Ltd said.
Jim Johnson, CEO, Hunting PLC said, "We look forward to introducing more advanced connection technology as we progress along. I am confident that this JV Manufacturing Hub will bring benefits to the local oil and gas (O&G) industry, and also play a part in India's energy transition."
Jindal SAW is a manufacturer and supplier of steel pipe products, fittings and accessories with manufacturing facilities in India, the US, Europe and the UAE.
Hunting Energy Services manufactures premium, high-end downhole metal tools and components required to extract hydrocarbons across the well construction, completion and intervention stages of the well's lifecycle.