CHENGDU, China, March 21, 2016 /PRNewswire/ -- Honghua Group Ltd. ("HH") (Stock Code: 196.HK), a leading global land drilling rig manufacturer, is pleased to announce that Honghua Golden Coast Equipment FZE ("HH Golden Coast"), a wholly-owned subsidiary of the Group, entered into a sales agreement (the "Sales Agreement") with Kuwait Drilling Company K.S.C ("KDC") on 15 March 2016, with a total amount of approximately US$15 million (approximately HK$118 million). Pursuant to the Sales Agreement, a 7,000-meter cluster well drilling rig is expected to deliver to KDC by the end of 2016.
This newly signed drilling rig contract, following the sales agreement of a 9,000-meter ultra-deep drilling rig with KDC on 1 January 2016, marks the breakthrough of HH's cluster well drilling rig entering into Kuwait market for the first time.
Mr. Zhang Mi, Chairman of HH commented, "As the national drilling company in Kuwait, KDC has continued to purchase HH products, representing its high recognition of our producst and trust in the HH brand. The Sales Agreement marks a solid and strategic step towards enhancing the leading position of new rig sales in the Kuwait market and expanding our influence in the region. It has also laid a significant solid foundation for further in-depth cooperation with KDC and better sales achievement in the future."
About HH (Stock Code: 196.HK)
HH is one of the largest land drilling equipment manufacturers in the world, which is primarily engaged in manufacturing conventional land drilling rigs, digital drilling rigs, accessories of drilling rigs, as well as the parts and components for the drilling rigs or for the maintenance of the drilling rigs in operation. Leveraging on the strong R&D strength, high-quality production facilities and mature international sales network, HH's products have been sold to a large number of famous enterprises all over the world, including major oil-production regions such as North America, Middle East, and emerging markets including South America, India, Russia, China, Africa. Meanwhile, the overall construction of the base located in Qidong County, Jiangsu Province progressed well, among which the dock basin project has passed the examination of related departments and the overall lifting of "Honghai crane" stage 1 was completed in 2015. Based on the existing solid foundation of the drilling rigs equipment, HH will implement diverse development strategies, and expand to become the integrated enterprise which is involved in the interaction development of three major sectors, including onshore and offshore areas, equipment manufacturing and oil and gas resources development (especially the unconventional oil and gas area), as well as engineering services.
Honghua Group Limited
Ms. Jinny Chen
Tel: (86 28) 6817 6881
Fax: (86 28) 8297 1850
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SOURCE Honghua Group Ltd.