Honghua, Kuwait Drilling Co. enter into $25 million drilling rig sales agreement

Hong Kong-based Honghua Group Ltd., a company that produces global land drilling rigs, has entered into a $25 million ultra-deep drilling rig sales agreement with Kuwait Drilling Co.

Under the terms of the agreement, Honghua will sell and deliver one set of the rigs to a KDC site 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," Zhang Mi, Honghua chairman, said.

Mi said the two companies have had "a very good relationship" since Honghua ventured into the Kuwaiti market in 2008.

"The continued cooperation not only represents the high market reorganization of our products, but has also shown brand loyalty," he said.

Mi said the aim of the agreement was to consolidate and increase Honghua's 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."

The partnership also hopes, Mi said, to increase Honghua's influence in the global market.