Honghua Group Enters into Trailer Drilling Rig Sales Agreement Worth Approximately HK$200 Million with Weatherford
soruce：manager click：6528 time：2012-09-17
12 Sep 2012, Hong Kong Honghua Group Ltd. (“Honghua” or the “Group”) (Stock Code: 196.HK), a leading global land drilling rig manufacturer, is pleased to announce that the Group has recently entered into a trailer drilling rig sales agreement (the “Agreement”) worth approximately US$27 million (approximately HK$200 million) with Weatherford International Ltd. (“Weatherford”, NYSE: WTF), the leading international oil drilling equipment and services provider. The Agreement not only consolidates the long-term partnership between the Group and the client, but also signifies the Group’s further enhancement of brand awareness and market share.
Pursuant to the Agreement, the Group will provide 3 sets of ZJ30T Whole Sets Drilling Rig and deliver them separately to Weatherford in 2013, which will be shipped to Russia and used for local oilfield operation.
Weatherford, one of the four largest international oil service companies, currently provides exploration and exploitation services for oil and gas fields in more than 100 countries and regions across the globe. Leveraging on strong research and production capability, as well as provision of cost-efficient products for clients, Honghua obtained support from the client and eventually secured the agreement.
Mr. Ren Jie, Vice President of Honghua in charge of sales commented, “We are glad to see the continuous stable development of the Group’s business and the successful acquisition of the agreement with an international large-scale client. It has enhanced the Group’s confidence to further expand global market share. As a large multinational oilfield services and equipment enterprise, Weatherford has businesses in major energy-producing areas and also actively expanding its business in emerging markets such as Russia in recent years. The Agreement not only signifies the high recognition of Honghua’s cost-efficient products by Weatherford, but also consolidates Honghua’s leading position in the Russian market. In addition, through extensive local experiences of Rushong-Hua Co.,Ltd. and strong customer base of Honghua Golden Coast Equipment FZE, the Group realised internal cooperation for the first time. It has effectively utilised internal resources and developed remarkable synergies. We believe the comprehensive internal cooperation will benefit the Group to further consolidate market resources, strengthen brand awareness, promote the continual development of the business and enlarge market share, so as to optimise global allocation and bring maximum returns to shareholders.”
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