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Hilong Awarded BP’s USD85 Million Contract

Date 2018-05-08

(May 8th, 2018, Shanghai) The board of directors of Hilong has announced that Hilong
Oil Service & Engineering Co. Ltd., an indirect wholly-owned subsidiary of Hilong, has recently entered into a contract with BP Iraq N.V. (“BP”) regarding the provision and operation of two onshore workover units (HL99 and HL100). 

 

The contract of HL99 and HL100 will commence from the time window between 1 January 2019 to 31 January 2019, and last for a primary period of five 5 years and can be further extended for a period of one 1 year. The total consideration under the contract is approximately USD85,000,000. 

 

The operating area of the contract is located at the Rumaila Oilfield in southern Iraq, a consortium jointly established by BP and its partner awarded the Producing Field Technical Services Agreement by Iraq’s Ministry of Oil for operating the Rumaila Oilfield. BP enters contracts as lead contractor for the contractor group. The estimated reserves of Rumaila Oilfield, the largest oil field in Iraq and also one of the largest oil fields in the world, are more than 17 billion barrels. 

 

“Securing the opportunity to provide the service to BP indicates that Hilong entered the horizon of one more international prestigious oil company, “said Hilong Group Vice President and Hilong Oil Service General Manager Wang Xianglei. “This is of great and special significance for Hilong to realize our strategy in the Middle East and North Africa areas and our drilling (workover) integrated service plan.”

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