OREANDA-NEWS. January 23, 2015. Hilong Holding Limited (“Hilong” or the “Company”; stock code: 1623), a leading PRC-based integrated oilfield equipment and services provider, has announced that it has signed a contract (the “Contract”) with CNOOC China Limited, a wholly-owned subsidiary of CNOOC Limited, to provide offshore pipe-laying service for the CNOOC East China Sea Project with the Company’s offshore pipe-laying vessel “Hilong 106”.

The total contract value is ca. USD60.1 million. This is the second offshore pipe-laying service contract that Hilong obtained from CNOOC after winning a contract for the Phase II of Weizhou Project (the “Weizhou Contract”).

The Contract is an EPCI service contract covering a series of work including construction engineering, materials procurement, offshore construction and project management. The project focuses on building two subsea pipelines linking the platforms with a total pipe-laying length of 38 kilometers. Construction work of the Contract is more challenging as compared with that of the Weizhou Contract, but also provides a precious opportunity for Hilong to establish its brand name and reputation as a high-profile provider for offshore engineering services. Meanwhile, Hilong’s line pipe coating services will be procured in this project, which will generate synergies with the Company’s line pipe technology and services segment and set a good start for Hilong to grow into a one-stop solution provider for offshore engineering services.

Hilong developed the major strategy of marching into the offshore engineering services field based on its profound interpretation of Chinese government’s energy policy and precise understanding of the trend for the global energy industry. Hilong has successfully secured two contracts from CNOOC in succession to provide offshore pipe-laying services for the customer’s two major projects through public tender, making it the first domestic private company in the offshore engineering services industry winning contracts of such big size. Such remarkable achievements indicated that Hilong has already gained the recognition and trust from the top-notch clients in this field represented by CNOOC for the qualifications and capabilities of “Hilong 106” and the team operating the offshore engineering services. Under the current market conditions, these two major contracts brought new revenue sources for Hilong, effectively improved the Company’s risk-resistance ability and injected new impetus for continuous growth. This fully illustrated the great vision of Hilong’s management team to develop the strategy of entering into the offshore engineering services field. Hilong will strive to win more high-profile contracts for “Hilong 106” from the high-end customers in both domestic and international markets and is confident and capable of achieving new heights in this new field.