Honghua Group and KDC in ultra-deep drilling rig sales agreement

Leading global land drilling rig manufacturer, Honghua Group Ltd has announced that the company has entered into an ultra-deep drilling rig sales agreement with Kuwait Drilling Company K.S.C. ("KDC"), with a total value of approximately US$25 million (HK$194 million). Pursuant to the Sales Agreement, Honghua will provide and deliver one set of ultra-deep drilling rigs to KDC in 2016.

Mr. Zhang Mi, Chairman of HH remarked: "This Sales Agreement marks the first domestic made ultra-deep drilling rig to enter into the Kuwait market and breaks the long-term monopoly of the Kuwaiti ultra-deep drilling rigs market by western drilling rigs manufacturers. Since HH's entrance into the Kuwait market in 2008, we have maintained a very good relationship with KDC. The continued cooperation not only represents the high market reorganisation of our products, but has also shown brand loyalty. We believe that the agreement will benefit HH in consolidating and increasing its market share in Kuwait, as well as serving our goal of continuously penetrating into the high-end drilling rigs market in the Middle East, further optimizing our global business layout which will provide a solid foundation for HH's wider and deeper cooperation in the future and increase our influence on global markets."

Edited from press release by Angharad Lock

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