Honghua Group scores rig contract from Kuwait Drilling Company

Hong Kong-listed rig manufacturer Honghua Group has announced that it has entered into an agreement with Kuwait Drilling Company (KDC) for the construction of an ultra-deepwater drilling rig.

The contract value is around $25m, and Honghua will deliver the drilling rig to KDC in 2016.

“This sales agreement marks the first domestic made ultra-deep drilling rig to enter into the Kuwait market and breaks the long-term monopoly of the Kuwaiti ultra-deep drilling rigs market by western drilling rigs manufacturers. We believe that the agreement will benefit HH in consolidating and increasing its market share in Kuwait, as well as serving our goal of continuously penetrating into the high-end drilling rigs market in the Middle East, further optimizing our global business layout which will provide a solid foundation for HH’s wider and deeper cooperation in the future and increase our influence on global markets,” said Zhang Mi, chairman of Honghua Group.