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Hilong signs a drill pipe and coating service contract with a total value of around 41.5 million US dollars to further consolidate its position in the American market

Date 2022-11-08

 (November 8, 2022, Shanghai) In recent months, three subsidiaries of Hilong Group located in the Americas—Hilong USA LLC, Hilong Petropipe Co., Ltd and Texas Internal Pipe Coating, LLC—signed seven drill pipe supply contracts with a total value of approximately US$28 million and two coating service contracts with a total value of approximately US$13.5 million. In total, the value of these contracts amounts to approximately US$41.5 million. Partners include Ventura Petroleo S.A. and Western Energy Services Corp.'s affiliate—Horizon Drilling, Precision Drilling Corporation's affiliates—Precision Drilling Canada Limited Partnership, Precision Drilling Corporation, Complete Tubular Products Ltd, Savanna Drilling Corp., Bonanza Drilling Inc., Ensign US Southern Drilling LLC, XTO Energy Inc., and ConocoPhillips. 

According to these seven drill pipe contracts, Hilong will provide Ventura Petroleo S.A. with 6 5 /8 inch diameter ultra-deep sea drill pipes in the South American market. These products will be used in Petróleo Brasileiro S.A.’s deep-sea drilling project. In the North American market, Hilong will provide Western Energy Services Corp. with HLST40 connection drill pipes and Bonanza Drilling Inc. with double-step buckle drill pipes. The two coating service contracts are renewal contracts.

Cao Yuhong, Senior Vice President of Hilong Group and General Manager of Oilfield Equipment, said: "The signing of these seven drill pipes and two coating contracts not only demonstrates the new business opportunities that Hilong has obtained in the Canadian market, but also Hilong’s continued strategy to expand into international markets. Meanwhile, it further consolidates Hilong's position in American and international markets. Hilong's drill pipe production capacity has been recognized in the industry, and its coating service standards has also met the expectations of major oil and gas companies in North America."

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