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 marked HH's great breakthrough in this field. HH will focus on the R & D, manufacturing, and trade of oil production and transportation equipments to well prepare itself for the coming opportunities in this field."
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. Based on the existing solid foundation, 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, 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