CHICAGO U.S. Steel Corp.s Tubular Products Inc. subsidiary has formed a 50-50 joint venture with Butch Gilliam Enterprises LLC to provide tubular services to energy industry customers in the Permian Basin.
The Pittsburgh-based steelmaker said the Midland, Texas-based joint venture, Patriot Premium Threading Services, sports a new facility for threading U.S. Steel tubular products. The financial terms of the deal were not immediately available.
Operations at the facility, which will employ between 20 and 40 workers based on market demand, will ramp up this month, a U.S. Steel spokeswoman told AMM in an e-mail Monday. The plant has two double-ended premium threading lines, a swage line with stress-release equipment, and a computer-controlled machining center, she said.
The facility will be able to thread material in diameters from 2⅜ to 11¾ inches and will be licensed to thread all of U.S. Steels premium connections, including its new USS-Liberty FJM, a flush connection for critical applications, U.S. Steel said. The joint venture with Butch Gilliam Enterprises, also based in Midland, also will provide accessories, repair services, technical assistance and rig-site services.
Butch Gilliam, president of Butch Gilliam Enterprises and president of Patriot Premium Threading Services, will manage the day-to-day operations of the joint venture, U.S. Steel said.
"Butch Gilliams 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," Douglas R. Matthews, senior vice president of U.S. Steels tubular operations, said in a statement.
The Permian Basin, which underlies much of west Texas and parts of southeastern New Mexico, has long been a source of oil in a region that accounts for much of the drilling activity in the United States.