CM Energy Led Consortium Won US$163.8 Million Order for Oil Rig Moderation and O&M Services in Mexico

HONGKONG  , Dec. 11, 2023 /PRNewswire/ -- On December 11, 2023, TSC Manufacturing and Supply LLC ("TSC"), based in Houston Texas, a wholly-owned subsidiary of CM Energy Tech Ltd., received the first order of land rig modernization contract from Petróleos Mexicanos (PEMEX) in the amount of US$13,211,970. This is the first of a series of orders under the bid won earlier by TSC. In July 2023, TSC successfully won the bid for two major projects from PEMEX with a total amount of US$163.8 million and has signed three framework agreements for equipment supply and services. The contracts will be valid for 30 months. The issuance of this first order marks the formal execution of the contract.

To address the customer needs for upgrading and modernizing their old rig fleet for drilling deep and ultra deep wells, TSC led consortium, including TSC, Andrews Technologies Inc. (ATI), and Andrews Technologies de Mexico S.A de C.V. (ATM), participated the tenders issued by PEMEX. With more than 20 years of experiences in manufacturing and servicing mission critical high-end equipment in the energy industry and excellent track records, as well as reliable partners in supply chain, TSC's consortium came out as the winner among several well known international bidders. The consortium was awarded three contracts, including the equipment supply contract, maintenance service contract for the rehabilitation, modernization, and automation upgrade of seven land drilling rigs, as well as the operation and maintenance service contract for several top drives and catwalks. The total amount of the contracts for the equipment supplies and the maintenance service is about US$98.1 million, which will be executed in batches with the completion at the end of 2025. The total amount of operation and maintenance contract is US$65.7 million, which is expected to be completed by the end of 2025. This is also the first time for TSC's state-of-the-art control and drive systems and drilling cabins to enter the Mexican market.

Previously, the consortium has completed the modernization and upgrade for four similar old rigs for PEMEX, including a 7,000 meter rig which reportedly drilled a well with a total depth of 7,921 meters and initial oil production of 16,000 bbl/d. The performance and quality of the rigs have been well appreciated by the client. "We appreciate the business and trust by PEMEX for awarding these three major contracts to the Consortium and I am confident that we will deliver the state-of-the-art products to meet the quality and other terms and conditions specified in the contracts", said Mr. Zhan Huafeng, CEO of CM Energy.  

In fact, TSC has been operating in Mexico for over 11 years with local offices and service workshops located in Ciudad del Carman and in Villahermosa. Our business in Mexico includes engineering and maintenance services, equipment shop repairs and certifications, rental of offshore rigs and other vessels, as well as equipment and expendable supplies. Our customers include Pemex and almost all the major onshore and offshore drillers in the country. "With the local presence and the timely support by Houston head office, TSC is committed to the market and will continually support Pemex and other customers in Mexico with our technology, state-of-the-art products and timely services" Commented by Morgan Zhang, President for International Business of CM Energy.

It is reported that currently Mexico has become the largest trading partner of the United States. With the local presence in Mexico and our track records and reputation earned through the years, we expect that Mexico, and other Latin America countries will fuel the growth of CM Energy's business not only in our legacy business, but also in the renewable energy sector.

About CM Energy

CM Energy Tech has been serving the energy industry for nearly 30 years and is one of the leading companies in the world in designing, manufacturing and supplying high-end and mission critical equipment, technology, services and solutions to the global energy industry.  CM Energy's green technologies include key equipment in offshore wind turbine installation vessels (WTIV) and offshore wind service vessels (SOV).  CM Energy's hydrogen technologies include its innovative hydrogen electrolysers and equipment for hydrogen refill stations. CM Energy is listed on the Main Board of the Hong Kong Stock Exchange with stock code "HK.206".  CM Energy's largest shareholder is China Merchants Industry Group.

About Petróleos Mexicanos (PEMEX)

Petróleos Mexicanos (PEMEX) was founded in 1938 and is one of the largest and most influential companies in Latin America. The company's operations span the value chain of the oil and gas industry, from exploration and production (upstream) to industry transformation, logistics and marketing (downstream), with operations throughout Mexico. PEMEX is one of the few fully integrated oil companies in the world and an integral part of Mexico's economic and social development, with a wide range of operations and many exploration and production projects carried out each year.

CONTACT: Xiaoshu Zheng, xiaoshu.zheng@cmicholding.com

SOURCE CM Energy Tech Co., Ltd.