China Gengsheng Minerals, Inc., a materials technology company in China with products capable of withstanding high temperature, saving energy and boosting productivity in certain industries such as steel and oil, today announced that it has won a supply contract for fracture proppant products with Liaohe Oilfield, a subsidiary of China National Petroleum Corporation (CNPC). The total value of the contract is $3 million.
Pursuant to the contract, Gengsheng is to start shipping fracture proppants for Liaohe Oilfield’s Changqing Project in Inner Mongolia immediately. The duration of the contract is until December 30, 2009. Fracture proppants are light, bauxite-based, grain-like materials that have a round and smooth surface and a quality of resisting high pressure and acid corrosion. They are used by oil and gas drillers to extract pockets of oil and natural gas scattered underground.
Liaohe Oilfield is China’s third largest oil field, and it produced about 6% of China’s oil supply as of 2007, according to CNPC’s Website.