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May 27th,2013, Shanghai, – Hilong Oil Service and Engineering has signed an interim oilfield service agreement with Shell Petroleum Development Company of Nigeria Limited to provide high temperature and high pressure drilling and workover services for four years. The agreement demonstrates Hilong’s competitiveness in the international market and marks further progress in the strategic transition into a business model that combines engineering and service.
The total value of the contract is estimated at US$90.10 million.
Hilong will provide 3000HP high temperature and high pressure drilling services for Shell which are typically used for ultra deep drilling in geologically environmental extremes. Previously, Hilong and Shell had conducted several rounds of talks and sufficient verifications regarding technical requirements and other details of the project. Securing the service contract is testimony that Hilong’s oilfield services segment offers world-class technology and capabilities for land drilling services and has gained acceptance from internationally renowned customers.
“Our cooperation with Shell in the area of high temperature and high pressure drilling is a major breakthrough for us in oilfield services development, proving that we possess world-leading drilling service technology and capabilities. It will lay a solid foundation for Hilong’s rapid growth in the service industry in the coming years,” said Hilong Chairman and Chief Executive Officer Zhang Jun. “The service agreement covers advanced technologies, a large scale of operations and a long service period, which demonstrates Hilong’s strong competitiveness in the international market and the fact that the company has gained the trust of leading international partners."
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