WSP Holdings Announces Agreement to Sell Assets of Houston OCTG
10/02/2012 - China's WSP Holdings Limited announced it has entered into a definitive agreement with Southern Tube, an affiliate of Nippon Steel & Sumitomo Metal Corp., for the sale of certain assets of its wholly-owned U.S. subsidiary, Houston OCTG Group.
WSP Holdings Limited, a leading Chinese manufacturer of API (American Petroleum Institute) and non-API seamless casing, tubing and drill pipes used in oil and natural gas exploration, drilling and extraction (OCTG) and other pipes and connectors, announced that it has entered into a definitive agreement with Southern Tube LLC, an affiliate of Nippon Steel & Sumitomo Metal Corporation, for the sale of certain assets of Houston OCTG Group, Inc., its wholly-owned U.S. subsidiary. Under the terms of the agreement, Southern Tube will purchase production facilities held by Houston OCTG, including land, equipment and related permits and licenses, for a total consideration of US$43 million. The transaction is expected to close by the end of November 2012. The closing of the transaction is subject to certain customary closing conditions.
WSP Holdings develops and manufactures seamless OCTG, including seamless casing, tubing and drill pipes used for on-shore and off-shore oil and gas exploration, drilling and extraction, and other pipes and connectors. Founded as WSP China in 1999, the company offers a wide range of API and non-API seamless OCTG products, including products that are used in extreme drilling and extraction conditions. Its products are used in China’s major oilfields and are exported to oil producing regions throughout the world.
