Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 October 26, 2015 - 5:08 AM EDT
Print Email Article Font Down Font Up
Acquired Oilfield Turnkey Service Agreements Amounted Approximately US$340 million with Venezuela Client

-- Leveraging the Equipment and Technological Advantages to Further Expand in the American Market

CHENGDU, China, Oct. 26, 2015 /PRNewswire/ -- Honghua Group Ltd. ("HH") (Stock Code: 196.HK), a leading global land drilling rig manufacturer, is pleased to announce that Sichuan Honghua International Co., Ltd ("Honghua International"), the indirect subsidiary of the Company, entered into three oil and gas engineering turnkey service agreements in an aggregate amount of approximately US$340 million (approximately HK$2,635 million) with PDVSA PETROLEO, S.A ("PDVSA") on 22 October (Venezuela time). Pursuant to the agreements, HH will provide turnkey services to PDVSA in Lake Maracaibo area of Venezuela, including progressive cavity pump ("PCP") upgrade project, electric submersible pump ("ESP") upgrade project and pipe-laying project. These three projects are all reconstruction and stimulation projects for aging oilfields to enhance and restore their oil well production level.

Mr. Zhang Mi, Chairman of HH commented, "The turnkey service agreements that HH signed with the old client PDVSA this time, mark a great breakthrough in EPC service business of HH oilfield services. It not only enhanced our market position in South American markets, but also extended our unique advantages in related products/services, global procurement network and customer network. Meanwhile, in recent years, HH has been paying close attention to the business opportunities in oil production and transportation equipments, thus the signing of these agreements also marks HH's great breakthrough in this field. HH will focus on R&D, manufacturing, and trade of oil production and transportation equipments to well preparing themselves for the coming opportunities in this field."

About HH

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 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.

For further information, please contact:

Honghua Group Limited
Ms. Jinny Chen
Tel: (86 28) 6817 6881
Fax: (86 28) 8297 1850

To view the original version on PR Newswire, visit:

SOURCE Honghua Group Ltd.

Source: PR Newswire (October 26, 2015 - 5:08 AM EDT)

News by QuoteMedia