Phoenix New Media Hong Kong Stock | Baiqin Oil Service (02178) announced that Shenzhen Baiqin Petroleum Technology Co., Ltd. (Shenzhen Baiqin), a wholly-owned subsidiary of the company, and Ganzi Yuanwei New Energy Development Co., Ltd. (Yuanwei New Energy) entered into a cooperation framework agreement on January 18, 2022.
According to the framework agreement, the parties to the framework agreement will cooperate to set up a project company to build and utilize geothermal energy from four high-temperature geothermal mines in Ganzi Tibetan Autonomous Prefecture, Sichuan Province, China. Yuanwei New Energy will be responsible for the operation of the project company. Shenzhen Baiqin will be responsible for providing technical support services related to the exploration, development and utilization of geothermal resources for the project company. Shenzhen Baiqin will also be responsible for the maintenance and operation of the geothermal resources system of the project company. Shenzhen Baiqin should also assist the project company in preparing business plans and introducing strategic investors and downstream users. Under the same conditions, the project company shall give priority to employing Shenzhen Baiqin as the supplier of drilling and completion services and production tools and equipment for geothermal projects.