Singapore (Platts)--25Nov2012/1059 pm EST/359 GMT

Beijing-based drilling company Anton Oilfield Services Group said late Sunday that it had been awarded a contract by Chinese state company Sinopec to provide fracking services for tight gas development in China's Ordos Basin.

This is the third consecutive tender for horizontal well multi-stage fracking from Sinopec this year and will involve 50 wells, Anton said in a statement, adding that this would bring its total number of jobs for Sinopec this year to 120.

Most of the drilling is expected to be completed in the first half of 2013. Anton did not specify which block the contract covers.

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Gas-in-place at the basin is estimated in a 1 Tcf-3.8 Tcf range, making it China's second largest resource.

Tight gas is characterized by low-permeability reservoirs which require specific stimulation techniques for the gas to be extracted.

Compared with other fracking techniques, horizontal well multi-stage fracking "leaves fewer side effects on the formation and does not require well cementing," which will save operators considerable well construction costs, Anton said. Such technology is increasingly being applied to tight gas developments, the company added.

Since 2010 Anton has competed more than 200 horizontal well multi-stage fracking jobs in China. The driller, listed in Hong Kong, said earlier this year that it would focus more on unconventional gas projects.

Oilfield services giant Schlumberger acquired a 20.1% stake in Anton in July in a move aimed at strengthening both companies' presence in China.

--Song Yen Ling, yen_ling_song@platts.com --Edited by Martin O'Rourke, martin_orourke@platts.com

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