Saudi Aramco is to join forces with two Chinese state oil companies to take a $2.2 billion stake in Frac Tec, and American company dedicated to fracking processes and equipment.
The $2.2 billion deal will see Aramco, Sinopec and CNOOC take up to 30% of Frac Tec, according to a Reuters report citing people familiar with the deal, who 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.
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.
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