Honghua Group (00196) has announced that its subsidiary, Sichuan Honghua Petroleum Equipment Co., Ltd., has recently entered into a drilling rig sales agreement with a Middle Eastern client, with the total contract value reaching RMB600 million. Under the terms of this agreement, Sichuan Honghua will supply multiple sets of large-scale drilling rig equipment to the client.
These drilling rigs will be equipped with the company's independently developed automated tools, the OperaTM intelligent drilling system, and other smart equipment, which are expected to significantly enhance drilling operational efficiency and elevate the level of automation and intelligence. The advanced features are designed to meet the client's requirements for safety, as well as green and low-carbon operations.
The sales agreement was negotiated between Sichuan Honghua and the client on an arm's-length basis. The terms of the agreement are considered normal commercial terms that are fair and reasonable, and they align with the overall interests of the company and its shareholders.
Described as a leading local drilling contractor and comprehensive oilfield service provider in the Middle East, the client primarily focuses on onshore drilling services in the region. Honghua Group has maintained a long-term, friendly cooperative relationship with this client, consistently supplying advanced drilling equipment and supporting components over the years.
The signing of this sales agreement is expected to further consolidate the group's leading position in the large-scale drilling rig market in the Middle East and lay a solid foundation for deeper collaboration between the two parties in the future.
Comments