(Yicai Global) March 1 -- Shaanxi-based Tong Oil Tools Co. plans to up its investment in its US subsidiary by USD20 million to supply growing demand in North America for oilfield services.

Tong Oil Tools Co.'s board passed a proposal today to raise investment in its wholly-owned subsidiary WellChase Energy Inc. registered in Houston, in the southwest state of Texas which it formed in June 2013. Its current total investment is USD25 million.

The recent upsurge of international crude oil prices has caused the number of active drilling platforms in North America to gradually rise since the fourth quarter and the oilfield services industry to significantly pick up. WellChase Energy mainly engages in the perforation of oilfields, which is a key process in petroleum exploration. Its business is expected to grow substantially this year, Tong Oil Tools said.

The investment in WellChase Energy will enhance its operating capability, help develop its main business in the US and exploit the favorable environment for the oil industry's recovery to promote its internationalization, the company said.

Brent crude prices have rebounded since the fourth quarter, jumping to an acme of USD71.28 per barrel in January from USD56.53 per barrel at the end of September, though prices have fallen thereafter, ending up at USD64.75 per barrel yesterday.

Formed in 1995, Tong Oil Tools mainly provides technical services to oilfield customers and is a leader in China's perforating sector. The company's business covers 24 domestic oil fields and it is also active in other overseas markets in Indonesia, Mexico and Kazakhstan.