Saudi Aramco, China Petroleum & Chemical Corporation and CNOOC are in talks to buy up to 30% stake in North American oil and gas services company Frac Tech International in a deal worth about USD 2.2 billion.

The sources said that Frac Tech has hired a bank to advise on the deal. Frac Tech was also in advanced talks with Saudi Aramco, Repsol-YPF SA and Sinopec to establish three separate fracking JV in the Middle East, Argentina and China.

Frac Tech, which helps exploration and production companies perform frac jobs and also produces equipment and materials, is also in early talks with three or four parties in Poland to establish a similar JV. The company planned to close the deals by the end of February ahead of a planned initial public offering targeted to raise about USD 1.15 billion.

(Sourced from Reuters)