Honghua Group Limited (Honghua) has announced that it has entered into an oilfield services agreement worth approximately US$26mn with an Iraqi client
Under the agreement, Honghua will provide drilling services for its client in Iraq using two rigs, the first of which is expected to start operations in August 2015 and the other in September 2015. Additionally, the oilfield services agreement includes subsequent optional drilling services provided by Honghua.
Commenting on the deal, Zhang Mi, chairman of Honghua, said, “By virtue of our high quality and self-developed drilling equipment, experienced oilfield services team, and Honghua's excellent sales record of land drilling rigs in the Middle East region, the Group is able to further expand its oil and gas engineering services business and consolidate its leading position in the Middle East market.”
Honghua is a land drilling equipment manufacturer, 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. The company’s clients include companies in North America, Middle East, South America, India, Russia, China and Africa.
Honghua did not reveal the identity of the client or specify if the contract was in southern Iraq or Kurdistan Region of Iraq in the north.
