Honghua Group (00196) subsidiary signed a drilling rig sales agreement with a Central Asian customer for a total amount of about US$59 million

According to the Zhitong Finance App, Honghua Group (00196) announced that the company's subsidiary, Sichuan Honghua International Science & Trade Co., Ltd. (Honghua International), and a Central Asian customer (this customer) recently signed a drilling rig sales agreement (sales agreement). According to the sales agreement, Honghua International will provide the customer with multiple sets of automated drilling rigs of specific specifications, with a total contract amount of about US$59 million.

The customer is mainly engaged in drilling operations within the Central Asian region. The Group has previously signed a sales agreement involving multiple sets of drilling rigs (Phase 1 project) with the customer's group. Relying on the Group's technical strength, customized solutions and full-process quality service demonstrated in the first phase of the project, the Group was highly recognized by customers in the region and successfully signed this sales agreement within half a year. The total contract amount for the first phase of the project and this sales agreement reached more than US$110 million.

The Group continues to increase its development efforts in the oil and gas equipment market outside the Middle East, and has achieved order breakthroughs one after another. The signing of this sales agreement marks the first time that the Group has achieved a market breakthrough for automated drilling rigs with specific specifications in Central Asia. The drilling rigs in this project are expected to have a demonstration effect, help customers reduce operating costs, improve safe operating standards, provide Central Asian customers with more efficient and intelligent oil and gas equipment choices, and help upgrade regional oil and gas equipment automation.