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Hilong Oil Service signed a well workover service contract with Basrah Oil Company

Date 2019-09-10

(September 9th, 2019, Shanghai)  Hilong Oil Service & Engineering Co., Ltd. (“Hilong Oil Service”), an indirect wholly-owned subsidiary of the Company, has recently signed a well workover service contract (the “Contract”) for the provision of well workover services as a general contractor with Basrah Oil Company (“BOC”) for the development of the Majnoon oil field in Basra, Iraq. The initial term of the Contract is 3 years and BOC has the option to extend the contract for 1 year. The operation is expected to commence from the middle of 2020. 


The Board of Hilong Holding Limited Company believes that there are promising development prospects in Iraq for oil service business, which makes it one of the core markets in the relevant business. The signing of the Contract marks a significant breakthrough of Hilong’s oil service business in Iraqi market and demonstrates that Hilong’s oil services are accepted and highly recognized by major operators in the industry. The Board considers that the Contract has further paved the road for Hilong to enter the boarder international markets. 


BOC is a state-run oil company of Iraq, mainly engaging in oil & gas development in the Basra province in Iraq. BOC is the partner of development organization of giant oilfields in south of Iraq, like Rumaila, Zubair, Majnoon. It has taken over operatorship from Shell Iraq Petroleum Development B.V. for Majnoon Oil Field contract area in Iraq.

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