Honghua Group (00196) subsidiary signed a 600 million yuan drilling rig sales agreement with Middle Eastern customers to provide several sets of large-scale drilling rig equipment

According to the Zhitong Finance App, Honghua Group (00196) announced that its subsidiary, Sichuan Honghua Petroleum Equipment Co., Ltd. (Sichuan Honghua), and a Middle Eastern customer (this customer) recently signed a drilling rig sales agreement (sales agreement) with a total amount of RMB 600 million. According to the sales agreement, Sichuan Honghua will provide the customer with several sets of large-scale drilling rig equipment. This batch of drilling rigs will be equipped with intelligent equipment such as automated tools and operaTM intelligent drilling systems independently developed by the company, which will help further improve the efficiency of drilling operations and the level of automation and intelligence of drilling rigs, and can meet customer requirements for safety, green and low carbon.

The sales agreement was determined by Sichuan Honghua after consultation with the customer in accordance with the principle of fairness. The terms of the sales agreement are normal commercial terms, fair and reasonable, and conform to the overall interests of the Company and its shareholders.

The customer is a leading drilling contractor and comprehensive oilfield service provider in the Middle East, mainly engaged in regional onshore drilling services. The company has established a long-term friendly cooperative relationship with this customer for many years, and continues to provide them with advanced drilling equipment and supporting parts. The signing of this sales agreement will further consolidate the Group's leading position in the Middle East large-scale drilling rig market and lay a solid foundation for further deepening cooperation between the two sides.