Enters Into Additional Land Drilling Rig Sales Agreement Worth US$135 Million with National Drilling Company in UAE
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November 20, 2013, Hong Kong - A leading global land drilling rig manufacturer – Honghua Group Ltd. (Stock Code: 196.HK) (“Honghua” or the “Group”),today announced that its wholly-owned subsidiary SichuanHonghua Petroleum Equipment Co., Ltd hasentered into a land drilling rig sales agreement (“Agreement”) worth approximatelyUS$135 million (approximately HK$1.060 billion) with National Drilling Company(“NDC”). It’s a new order for the same type of rigs from NDC subsequent to the previouscluster land drilling rig agreement worth US$300 million (approximately HK$2.335billion).
NDC is one of the largest drilling contractors in the Middle East. It’s primarily engaged in the provision of qualitydrilling and maintenance services. The land drilling rigs produced by Honghua has fulfilled all the requests of NDC regardingthe oilfields operation in the Middle East. Since December 2011, Honghua has obtained cumulative land drilling rig orders from NDC worth approximately US$500 million (approximately HK$3.925 billion). Pursuant to this Agreement, Honghua will provide 2 units of 9000-meter 3000hp cluster land drilling rigs and deliver them throughout stages in 2015.
Mr. Zhang Mi, the Chairman of Honghua, commented, “Honghua has established along-term and profound partnership with Middle-Eastern drilling contractor,NDC. It provides strong momentum forthe Group’s future expansion in the Middle Eastern markets. The Agreement implies our outstanding productiontechniques, cost-effective product advantages, as well as greater recognition receivedby high-end customers in the Middle East. It enables us to further consolidate the market position while greatlyenhance our reputation and competitiveness in the global market. Honghua hasbeen focusing on research and development, product optimization and long-term customer relations. Looking forward,we will continue to enhance our competitive edges, concentrate on customerneeds and promote business development, so as to bring maximum returns toshareholders.”
About Honghua Group Limited(Stock Code: 196.HK)
Honghua is one of the largest land drilling equipment manufacturers in theworld, which is primarily engaged in manufacturing conventional land drillingrigs, digital drilling rigs, accessories of drilling rigs, as well as the partsand components which are for the drilling rigs or for the maintenance of thedrilling rigs in operation. Leveraging on the strong R&D strength,high-quality production facilities and mature international sales network, theGroup’s products have been sold to a large number of famous enterprise all overthe world, including major oil-production regions such as North America, MiddleEast, and emerging markets including South America, India, Russia, China,Africa and etc. In 2012, the first phase (stage 1) of the construction of the baselocated in Qidong County, Jiangsu Province has been completed and the base hasthe manufacturing capabilities to receive offshore drilling platform orders.Based on the existing solid foundation of the drilling rigs equipment, Honghuawill implement diverse development strategies, and expand to become theintegrated enterprise which is involved in the interaction development of threemajor sectors, including onshore and offshore areas, equipment manufacturingand oil and gas resources development (especially the unconventional oil andgas area), as well as the engineering services.
About National Drilling Company
National Drilling Company (“NDC”) is one of the largest drilling contractorsin the Middle-East which is primarily engaged in the provision of qualitydrilling and maintenance services.
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Honghua Group Limited
Ms. Xiaoqi JI
Tel: (86 28) 8601 5242
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