Obtained A Land Drilling Rig Sales Agreement Again with KDC Worth over HK$400 Million and Further Enhance the Leading Position in Middle East Market
soruce：manager click：5371 time：2014-09-11
(11 September 2014, Hong Kong) A leading global land drilling rig manufacturer – Honghua Group Ltd. (Stock Code: 196.HK) (“Honghua” or the “Group”), is pleased to announce that Honghua Golden Coast Equipment FZE (“Honghua Golden Coast”), a wholly-owned subsidiary of Honghua, entered into a land drilling rig sales agreement (the “Sales Agreement”) with Kuwait Drilling Company K.S.C (“KDC”), with a total amount of approximately US$54 million (approximately HK$418.5 million). Pursuant to the Sales Agreement, Honghua Golden Coast will provide and deliver KDC 4 units of 7,000 meters land drilling rig in 2015.
Mr. Zhang Mi, Chairman of Honghua commented, “Honghua has further consolidated its leading position in the Middle East market and established deep partnership with KDC. It’s the second drilling rig sales agreement with KDC subsequent to the land drilling rig agreement signed worth approximately HK$110 million in June this year. The agreement not only deepens our long-term cooperation, but also reflects that Honghua’s fast-move desert rig designed for the Middle East market and its high-quality production and assembly process have gained great recognition from clients and the market. We believe that the agreement will benefit the Company in consolidating and increasing its market share in Kuwait, continuously penerating into the Middle East Market, further optimizing our global business layout which will provide strong momentum for the Group’s stable development in the long run.”
About Honghua Group Limited (Stock Code: 196.HK)
Honghua 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, the Group’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. In 2013, 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, Honghua 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.
About Kuwait Drilling Company K.S.C
Kuwait Drilling Company K.S.C is incorporated in Kuwait with 51% equity held by the Kuwait government. It’s principally engaged in drilling exploration, development and work-over businesses.
Released by Porda Havas International Finance Communications Group for and on behalf of Honghua Group Limited. For further information, please contact:
Honghua Group Limited
Ms. Mingjia Ding
Tel: (86 28) 8297 1864
Fax: (86 28) 8297 1850
Email: firstname.lastname@example.org / email@example.com
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