MOU For Strategic Cooperation Framework With GE

By MarEx 2014-05-07 18:48:00

Honghua Group (“Honghua” or the “Group”) , a leading global land drilling rig manufacturer, is pleased to announce that the Group entered into a three-year Memorandum of Understanding for Strategic Cooperation Framework (the “MOU”) with General Electric (China) Company Limited (“GE”) on May 5, 2014, and will jointly endeavor to develop the Honghua’s innovative integrated gas power solution for oil and gas field, and actively capture the huge opportunity of the development of conventional and unconventional energy in China.

According to the MOU, Honghua and GE will leverage their unique strengths in the oil and gas drilling equipment field to jointly develop an efficient, energy-saving and environmental-friendly integrated oil and gas drilling solution. Honghua will install GE gas power products, including aero derivative gas turbine and gas engine in its self-developed and manufactured innovative oil & gas drilling equipment, and will complete the integration in the Group’s production base in China. This equipment will be developed as an integrated on-site power solution for well drilling, well completion and output production by using conventional / unconventional natural gas or associated gas in the field. The power solution can also be applied to single operation, such as drilling, fracturing and water/gas injection.

Mr. Zhang Mi, Chairman of Honghua commented, “Honghua promulgated innovative integrated solution for unconventional oil & gas field under the concept of ‘exploiting gas by using gas; simultaneously producing gas and electricity’ in 2010. The cooperation with GE, the international leading provider of power equipment and engines this time has fully acknowledged our integrated solution for unconventional oil & gas exploration and exploitation by cooperation with GE. Meanwhile, Honghua is also the top priority partner in the field for GE. In addition, this cooperation marked a benchmark and enables Honghua further realize its innovative integrated shale gas solution. In the future, the oil & gas drilling equipment of Honghua will be equipped with GE waukesha gas engines, which will greatly save as much as 80% fuel costs, optimize operating efficiency of drill rig and significantly reduce greenhouse gas emissions by 95%. Thus, it will facilitate our clients to increase operational efficiency and reduce production cost obviously, promoting the development of shale gas industry in China and the world. Besides, Honghua, the second largest drilling rig manufacture in the world is expected to promote the industrial standard of global new drilling rig and lead the development trend of drilling rig by introducing effective and reliable GE waukesha gas engines. We believe the cooperation between two parties will increase the competitive advantages and sales of the Group’s drilling rig products, and further realize its efficient, energy-saving and environmental-friendly integrated shale gas solution at the same time. The cooperation with GE will enable the Group to grasp the market opportunity derived from shale gas exploration and boost the rapid development of the Group’s business.”

The products and services herein described in this press release are not endorsed by The Maritime Executive.