The parties will each hold a 50% interest in the JV, which will develop a highly automated well manufacturing system that could significantly improve the efficiency of drilling and completing new wells onshore.
The JV intends to use technologies such as automated directional drilling and drilling optimization, including technologies pioneered by Shell in its North America tight gas operations.
The companies have also signed a deal to pursue mutually beneficial cooperation opportunities globally as well as in China.
Shell CEO Peter Voser said the two companies are collaborating in a variety of projects globally with the aim of investing for profitable growth, and to meet the world’s growing demand for cleaner, affordable energy.
