Gelonghui, December 11|Huashang Energy (00206.HK) announced that under the good situation where the company's new energy technology innovation and industrial layout are progressing steadily, based on deep industry accumulation, Huashang Energy's traditional business is also developing steadily and continues to receive orders. On December 5, 2023, TSC Manufacturing and Supply, LLC (a limited liability company established under the laws of Texas, USA, “TSC”), a wholly owned subsidiary of Huashang Energy, received an execution order from Petróleos Mexicanos (“Pemex”) for the modernization contract of the first oil rig, amounting to 13,211,970 US dollars. Previously, in July 2023, TSC successfully won the bid for the Pemex project with a total amount of US$163.8 million and signed three equipment supply and service framework agreements for a period of 30 months. This Pemex order marks that the Pemex project that previously won the bid has officially entered the execution stage.
The joint bidder led by TSC (composed of TSC, Andrews Technologies Inc., and Andrews Technologies de México S.A.de C.V.) (the “Joint Bidder”) (the “Joint Bidder”) participated in the public tenders for three Pemex projects in response to customers' technical parameters and service requirements for modern high-end equipment for deep and ultra-deep wells. With its technical advantages, past performance and first-class products, and excellent supply chain partners in high-end energy equipment manufacturing for more than 20 years, Huashang Energy finally won in public bidding with many internationally renowned suppliers in terms of technology, service and business terms.
The projects that the joint bidder won the bid for this time include the following three contracts:
1. Equipment supply contract for seven land drilling rigs and equipment restoration, modernization and automated upgrading projects;
2. Maintenance service contracts for seven land drilling rigs and equipment restoration, modernization and automated upgrading projects; and
3. Several top-drive and catwalk aircraft operation and maintenance service contracts (including daily inspection, maintenance and spare parts supply).
Among them, the first two contracts, totaling about US$98.1 million, will be executed in batches. The contract is agreed to be delivered by the end of 2025; the third operation and maintenance contract, with an amount of US$65.7 million, is expected to be completed in 2025. The joint bidder won the bid this time, enabling TSC's modern control and drive system and drill house to enter the Mexican market for the first time.
Previously, TSC's joint bidder had carried out a similar modernization of Pemex's four drilling rigs over 30 years old. One of the 7,000-meter rigs successfully completed a high-yield oil well with a well depth of 7,921 meters and an output of 16,000 barrels per day, highlighting the high performance and quality of the drilling rigs. Huashang Energy's upgraded drilling rigs have become PEMEX's main drilling rigs. User satisfaction is high, and they have received unanimous recognition from Pemex senior management and users.
In recent years, the Mexican market has gradually emerged, market potential has been further stimulated and unleashed, and development prospects are broad. Huashang Energy's forward-looking layout has been deeply involved in Mexico for more than ten years. It has accumulated rich experience and technology accumulation, and established a good reputation and a high-quality brand image for Huashang Energy in the Mexican market. In the future, Huashang Energy will continue to explore the Mexican market on the basis of its current advantages, which will hopefully increase its performance and provide strong support for deepening the layout of new energy sources, bringing more new opportunities for its own development.