Honghua Group and Baker Hughes Collaborate to Explore and Develop
China's Unconventional Hydrocarbons Market
HOUSTON, Dec. 12, 2012 /PRNewswire/ -- Honghua Group
Limited (HK: 0196), a leading global land drilling rig
manufacturer, announced that it has signed a Memorandum of
Understanding (MOU) with Baker Hughes, a leading supplier of
oilfield services, products, technology and systems, to jointly
provide integrated operation services and carry out research and
sub-surface evaluation and engineering services for
non-conventional oil and gas opportunities in the People's Republic of China. The two
companies will jointly set up a research center for unconventional
energy in Chengdu, Sichuan Province, China, which will be
principally engaged in conducting shale oil and gas related
research and consultancy services to support shale oil and gas
development. The MOU signing ceremony happened on December 11, 2012 in Houston, Texas.
The strategic partnership will combine Baker Hughes' expertise
in global project management, reservoir technology and product
solutions with Honghua Group's strength in the production and
servicing of petroleum equipment to provide integrated solutions in
unconventional hydrocarbons to existing and potential
customers.
Mr. Zhang Mi, Chairman of Honghua Group, said, "The development
of unconventional hydrocarbons industry portends a major shift in
the global energy market. The cooperation between the two industry
leaders combines industry best practices, expertise and superior
technology to provide the best integrated solutions in the market
for oil and gas investors in China
and around the world."
"Baker Hughes is very pleased to be working with Honghua to
jointly conduct sub-surface research and evaluation for China's
vast unconventional resources," said Art
Soucy, President, Global Products and Services, Baker
Hughes. "Both companies have considerable expertise and through
this partnership, we will be able to develop innovative solutions
for our customers."
Per the MOU, the two companies will invest in the development
and testing of technologies and solutions that are applicable to
China's unconventional hydrocarbons market. In addition,
Honghua China and Baker Hughes
Beijing, the subsidiaries of Honghua Group and Baker Hughes
respectively, have agreed to start collaboration in the testing of
6,000 horsepower fracturing pump and sub-surface smart control
system for coiled tubing drilling rig..
During the MOU signing ceremony, Honghua Group and Baker Hughes
hosted an academic seminar on shale gas at the Southwest
Petroleum University in Chengdu, Sichuan
Province, which focused on China's complex geographical
conditions and the opportunities and challenges in shale gas
development in China. Stanford University professor and US government
energy advisor Mr. Mark Zoback gave
the keynote presentation at the seminar. Mr. Zoback is an
internationally renowned geomechanics expert and a pioneer in the
application of unconventional resource geomechanics. Mr. Zoback
discussed the application of geomechanics in shale gas exploration,
and technology solutions for shale gas exploration.
About Honghua Group:
Honghua Group Limited is a large-scale equipment manufacturer
and drilling service provider, specializing in research, design,
manufacture, and set-assembly of drilling rigs, offshore
engineering, and oil & gas exploitation and production
equipment. With its land drilling rig manufacturing base in
Sichuan province, Honghua Group is
the biggest exporter of drilling rigs in China, and one of the largest land drilling
rig manufacturers in the world. For more information on Honghua,
please visit http://www.hh-gltd.com/ or
http://www.hh-america.com/.
SOURCE Honghua Group Limited