Honghua Group Wins Rig Contract from Orion
Chinese rig builder Honghua Group (HGHUF) has been awarded a contract by Orion Engineering and Management Ltd to build a semi-submersible drilling rig, with options to build three more. According to a statement released by Honghua, the rig deal worth US$320 million was signed by its offshore outfit Honghua Offshore Oil & Gas Jiangsu Company Ltd.
According to the Agreement the order is expected to be executed within 60 days. The option to purchase an additional 3 rig units with the same specification of the Rig from Honghua Offshore under the same conditions each respectively will be at an interval of six-months.
The Rig and Option Units under the Letter of Award will be equipped with the Company’s in-house design and manufacture drilling package. Meanwhile, Orion will contract a subsidiary of Opus Offshore Ltd. to supervise the construction of the Rig according to the latest regulations and highest quality standards in place within the international offshore exploration and production sector. This will enable the Company to become a world class supplier in the global offshore drilling market.
Mr. Zhang Mi, Chairman of Honghua commented, “We have always been emphasizing that Honghua must be innovative and develop its self-developed core equipment in offshore engineering sector. Signing the LOA symbolised that the Company has started a new chapter of its manufacturing business, and successfully entered into the offshore drilling equipment market. We believe that it demonstrates client and the market’s recognition on the Company’s equipment design and construction capability. Meanwhile, the construction of a series of semi-submersible drilling rigs will capitalize on the strengths of the extraordinary capability of Honghai Crane to fully achieve the innovative concept of ‘onshore manufacturing of offshore equipment’, thus reducing contruction cost and production cycle time. The Company will continue to develop the offshore engineering business, continuously deepen the global business distribution, to provide inexhaustible momentum for the sustaining and stable development of the Group’s business.”