Andong oil field service(03337) announced that in the second quarter, the group's new orders were about 1.776 billion yuan, an increase of 117.3% over the same period last year. Among them, new orders in the Chinese market were about 398 million yuan, a decrease of 13.1% compared with the same period last year. New orders in the Iraqi market were about 1.166 billion yuan, a sharp increase of 230.9% over the same period last year New orders in other overseas markets are about 212 million yuan, a sharp increase of 205 million yuan over the same period last year.

As of June 30, 2021, the order on hand of the group is about 7.11 billion yuan. Among them, the Chinese market is about 2.991 billion yuan, accounting for about 42.1% of the group's total orders, the Iraqi market is about 3.507 billion yuan, accounting for 49.3% of the group's total orders, and other markets are about 612 million yuan, accounting for about 8.6% of the group's total orders.

In the second quarter, the global economy maintained the momentum of recovery, energy demand further recovered, and international oil prices continued to rise. From the point of view of the operation of the group, the oil field market in China actively promotes oil and gas development, the group actively participates in the bidding of projects in various markets, and continues to strive for high-quality orders with cash flow and return on net assets as the primary indicators; in terms of operations, in the second quarter, the Chinese market has entered the peak of operations, and the Group has made great efforts to promote the high-quality implementation of orders-on-hand. Overseas, the Group's business activities in overseas markets have become increasingly active, while projects that have been stalled by the epidemic have also resumed work one after another, and the operational efficiency has improved steadily.

In the Chinese market, during the quarter, the Group continued to win project orders for drilling tool leasing, production test workover and oil field inspection in Xinjiang market; to obtain orders for shale gas projects such as fracturing package and drilling fluid services in the southwest market; continue to obtain orders for coalbed methane coiled tubing services, fracturing pumping and production-increasing technical services for coalbed methane projects in Shanxi, Ordos and other places.

In overseas markets, in Iraq, the Group successfully completed the renewal of the integrated oil field management project in Makinu Oilfield, and the new contract is still in the "2o1" mode. The Group will continue to be responsible for the integrated management of the oil field, and the scope of work of the contract will be further expanded.

In addition, in Hafaya, Buzurgan and other oilfields, the Group has also won orders for light asset projects such as oil field operation and maintenance, supervision and supervision. In other overseas markets, the Group entered the Australian market for the first time to provide customers with light asset technical services. In West Africa, it successfully broke through the Niger market and obtained light asset project orders; in the Chadian market, the Group's business was fully rolled out, and a number of orders were obtained, such as workover services, mud services, metrology testing, and so on. New orders in overseas markets increased significantly compared with the same period last year.

In the domestic market, the Group continues to promote technological innovation and at the same time continues to strengthen the management and control of the whole process of the project in order to improve the profits of the project. During the quarter, in Sichuan shale gas area, the group coiled tubing team completed a coiled tubing operation service in an ultra-deep well with a depth of 7305 meters, setting a new domestic record; the group's gas seal testing team completed a well completion tubing ultra-high pressure gas seal testing operation, and the actual working pressure reached 120MPa, creating an industry record for gas seal testing. In the Xinjiang market, the group's oil-based mud, drilling tool leasing, testing technology and other services are efficiently promoted.

The overseas, Iraqi market, the group Maginu large-scale integrated oil field management project successfully completed the first three years of service at the end of the second quarter, reaped the HSE performance of 20 million no lost man-hour accidents, and won unanimous praise from customers. The new contract is seamlessly connected with the Yuan contract, the group will continue to provide customers with new integrated oil field management services for the "2th and 1st" year to ensure the smooth operation of the oil field. The Group's drilling project in the southern Iraqi oil field successfully resumed production at the end of the quarter. In other overseas markets, the integrated oil field management project in the African-Chadian market operates smoothly, and the projects such as mud and directional wells maintain a full workload. Pakistan, Kazakhstan and other markets drilling and workover projects, drilling tools testing projects, directional well projects and other smooth progress.