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On September 28, 2012, Hilong Holdings Limited (Stock code at The Stock Exchange of Hong Kong Limited: 1623) signed long-term drill pipe supply agreement with Canada Ensign Energy Services Inc (Ensign). This marked the first long-term supply agreement signed between Hilong and an influential company in oil industry from Western developed countries, signifying that Hilong drill pipe products’ quality, supply cycle and services have won recognition from renowned global companies in the industry represented by Ensign, Hilong brand has acquired further enhancement in industry standing.
Founded on March 31, 1987, and listed on Toronto Stock Exchange (TSX: ESI) in 1993, Ensign is the second largest land rig contractor and the third largest oilfield service contractor in Canada. Ensign owns 340 drill rigs, and 140 well service hoists, it operates in Canada, USA, Middle East, North Africa, Latin America, Australia and New Zealand.
The initial valid period of this long-term agreement is one year, in the future Ensign will hold negotiation over standard quotations with Hilong at the end of each year; based on common understanding reached between both sides, this agreement will remain valid for three years. Meanwhile, this agreement extended the markets for cooperation between both sides from Canada to Ensign’s all operation regions worldwide.
“This cooperation model is another manifestation of our strategy to develop international market, we hope to repeat it in cooperation with other large drilling contractors, it will facilitate our efforts to further improve Hilong’s competitiveness and market share in overseas market.” said Wang Tao, Executive President of Hilong Group.
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