US Steel Tubular Products, Inc a subsidiary of United States Steel Corporation and Butch Gilliam Enterprises LLC of Midland, Texas, announced the signing of a definitive agreement to form a joint venture to provide tubular services to the energy industry in the Permian Basin. The joint venture, Patriot Premium Threading Services, has operations located in the heart of the Permian Basin in Midland.
The new state of the art facility will be a comprehensive service provider licensed to thread US Steel tubular products as well as to provide accessories, repair services, technical assistance and rig site services. The facility's threading capability is 2-3/8 to 11-3/4 and it will be licensed to thread all of US Steel Tubular Products' premium connections including the recently introduced USS-LIBERTY FJM™ premium connection. USS-LIBERTY FJM™ is a premium flush connection designed for the clearance-critical applications in the Permian Basin.
Mr Douglas R Matthews senior vice president Tubular Operations for United States Steel said that "We are very excited to join with Butch Gilliam Enterprises to establish a production location in the Permian Basin to better serve our customers in this rapidly growing region. Butch Gilliam's extensive knowledge in this area combined with our capabilities to deliver premium energy tubulars is a great combination to service the growing needs of the energy market and our customers in this area."
Mr Butch Gilliam president of Patriot Premium Threading Services said that "We are proud and honored to partner with such a great American company and we look forward to combining our strengths to provide world-class service to our customers. Joining with US Steel Tubular Products allows us to offer the solutions necessary to meet the growing requirements of this market."
Day to day operations management will be by Butch Gilliam and operations are ramping up in December. Equity participation will be 50 percent for each partner.