Sichuan Honghua International Co., Ltd., a subsidiary of drilling rig manufacturer Honghua Group Ltd. (HH), acquired three oil and gas engineering turnkey service agreements Thursday with PDVSA PETROLEO, S.A.
The three agreements total approximately $340 million.
“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,” Zhang Mi, Chairman of Honghua Group, said. “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.”
Under the agreements, HH will service PDVSA in Lake Maracaibo area of Venezuela, including a progressive cavity pump upgrade project, an electric submersible pump upgrade project and a pipe-laying project that will reconstruct and stimulate the aging oilfields to fulfill production levels.
Mi further explained that HH was able to secure these contracts due to their close monitoring of the oil industry.
"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 marks HH's great breakthrough in this field,” Mi said. “HH will focus on R&D, manufacturing, and trade of oil production and transportation equipments to well preparing themselves for the coming opportunities in this field."
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