HONGHUA GROUP (00196) subsidiary signs drilling rig sales agreement with Central Asian customer, with a total amount of approximately US$59 million.

HONGHUA GROUP (00196) announced that its subsidiary, Sichuan Honghua International Technology & Trade Co., Ltd. (Honghua International), recently signed a drilling rig sales agreement (the Sales Agreement) with a Central Asian customer (the Customer). Pursuant to the Sales Agreement, Honghua International will supply the Customer with multiple sets of automated drilling rigs of specific specifications, with a total contract amount of approximately US$59 million. The Customer is primarily engaged in drilling operations in the Central Asian region. The Group previously signed a sales agreement involving multiple sets of drilling rigs (Phase I Project) with the group to which the Customer belongs. Leveraging the technical strength, customized solutions and full-process quality services demonstrated by the Group in the Phase I Project, the Group has gained high recognition from customers in the region and successfully signed this Sales Agreement within six months. The aggregate contract amount of the Phase I Project and this Sales Agreement exceeds US$110 million. The Group continues to step up development of the oil and gas equipment market outside the Middle East and has achieved successive order breakthroughs. The signing of this Sales Agreement marks the Group's first market breakthrough for automated drilling rigs of specific specifications in the Central Asian region. Once the drilling rigs under this project are put into operation, they are expected to deliver a demonstration effect, helping the Customer reduce operating costs and improve safety standards, providing Central Asian customers with more efficient and intelligent oil and gas equipment options, and facilitating the automated upgrading of oil and gas equipment in the region.