CHENGDU, China, July 17, 2015 /PRNewswire/ -- Honghua Group Ltd ("HH") (Stock Code: 196.HK), a leading global land drilling rig manufacturer, is pleased to announce that it entered into an oilfield services agreement worth approximately US$26.0 million (approximately HK$201.5 million) with an Iraqi client in early July. Pursuant to the oilfield services agreement, HH will provide drilling services using two rigs which are expected to gradually begin operations in August and September 2015. In addition, the oilfield services agreement also includes the subsequent optional drilling services provided by HH.
Mr. Zhang Mi, Chairman of HH commented, "By virtue of our high quality and self-developed drilling equipment, experienced oilfield services team, and HH's excellent sales record of land drilling rigs in the Middle East region, HH is able to further expand its oil and gas engineering services business and consolidate its leading position in the Middle East market. We will continue to expand the business layout from equipment manufacturing to engineering services by taking the drilling business as the core, and to capture the enormous opportunity rising from the recovery of the global oil market in the future. Looking ahead, HH will strive to strengthen technological innovation and service quality, further reinforce the main international market layout in the Middle East, Russia and South America, as well as to promote the synergy between strategic business segments, thus to provide significant momentum for HH's long-term steady development."
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" is expected to complete in 2015. Based on the existing solid foundation of the drilling rigs equipment, HH will implement business diversification strategy, 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.
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SOURCE Honghua Group