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Hilong Signs Cooperative Framework Agreement with Yanchang Petroleum<br/>To Increase the Annual Production Capacity of Coating for Tubing and Casing by 1,000,000 Metres

Date 2013-03-12

(Hong Kong, 12 March 2013) – Hilong Holding Limited (“Hilong” or the “Group”; stock code: 1623), a leading PRC-based integrated oilfield equipment and services provider, has announced that it has entered into a cooperative framework agreement with a subsidiary of Shaanxi Yanchang Petroleum Group (陝西延長石油集團) recently (“Yanchang Petroleum”) and has drawn up a joint venture agreement draft and the draft of the articles of association of the joint venture company. Under the agreement, the parties are co-investing in the establishment of the Shaanxi Yanchang Petroleum Tubo-Cote Limited (陝西延長石油圖博可特有限公司) (tentative name, “Joint venture Company”) and subsequent construction of facilities.


Shaanxi Yanchang Petroleum Group is China’s fourth largest petroleum enterprise and has a strategic position in the energy sector in China. According to the agreement, the Joint Venture Company is to be responsible for business encompassing the coating processing of petroleum tubular goods (including drill pipes, oil tubing and casing and line pipes) and related services. The Joint Venture Company is to have an operation period of 20 years. The first phase of construction is for the operations of an oil tubing and casing inner coating production line with 1,000,000 metres annual processing capacity.


Mr. Zhang Jun, Chairman and Chief Executive Officer of Hilong, said, “The joint venture between Hilong and Yanchang Petroleum will greatly facilitate the cooperation of both parties in advancing anti-corrosion of facilities at oil wells. Corrosion of oil tubing and casing is a serious concern facing oilfields across the country. During the past few years, Hilong has directed efforts to promote the application of drill pipe anti-corrosion technology in oil tubing and casing, achieving noteworthy success. The joint venture project with Yanchang Petroleum will fully adopt the outstanding resources and advanced technology of both parties and is expected to become a major driver to promote Hilong’s anti-corrosion coating technology for oil tubing and casing.”


~End~


About Hilong Holding Limited
Hilong Holding Limited is a leading PRC-based integrated oilfield equipment manufacturer and service provider with a focus on drill pipes, line pipe and OCTG coatings and oilfield services. It is China’s largest and the world’s second largest supplier of drill pipes and OCTG coatings, and the largest supplier of oil and gas line pipe coating materials in China. The Group has established a solid and diverse customer base, supported by the leading technologies and customized services.


For press enquiries:


Strategic Financial Relations (China) Limited


Ms Winnie Lau     Tel: (852) 2864 4876    winnie.lau@sprg.com.hk
Ms Melody Jin      Tel: (852) 2114 4963    melody.jin@sprg.com.hk

 

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