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Hilong Moves into Off-shore Oilfield Services with Purchase of Subsea Pipe-lay Barge

Date 2014-01-04

January 4th, 2014, Shanghai -- Hilong has acquired a subsea pipe-lay barge from Shanghai Zhenhua Heavy Industries Co., Ltd. (“Shanghai Zhenhua”) for a purchase price of USD 163.6 million, following the Group’s signing of an agreement in this regard with Shanghai Zhenhua on December 30th. This acquisition marks Hilong’s firm first step toward providing offshore oilfield services.
 
Signing the agreement were Hilong’s wholly owned subsidiary Hilong Marine Engineering (Hong Kong) Co., Ltd. and Shanghai Zhenhua’s subsidiary Zhenhua ZHPL3 Limited. The vessel will be delivered by April, 2014, according to the agreement.
        
The newly acquired pipe-lay barge can lay 6 to 60 inch (including coating layer) diameter pipes at depths from 8 to 300 meters underwater. It has an expected maximum hoisting capacity of 3,000 tonnes at 30 meters at stationary hoisting position and 2,000 tonnes at 35 meters at full circle swinging position. The vessel’s key technical parameters, including its full-load displacement, maximum operating water depth and maximum lifting capacity, all rate as being on the cutting edge within the Chinese market, and also are strongly competitive within Asia.
 
“Hilong’s entrance into offshore oilfield services is in line with the developmental trend of the global energy industry, and also conforms with the future energy development strategies and industrial policies laid out in the nation’s 12th Five-Year Plan,” said Hilong President Zhang Jun.
 
“Hilong’s pipe-laying services will make full use of Hilong’s existing advantages in high-end pipe coating services, and in CRA (Corrosion Resistant Alloy) compound piping and maritime CWC (Concrete Weighted Coating) in particular.” Zhang continued, “Furthermore, the production and laying of offshore pipelines, an important link in offshore pipeline engineering, will also provide a firm foundation, not only for Hilong’s future expansion and integration into the industrial chain, but also for the eventual offering of total solution services.”
 
Hilong Executive President Wang Tao and Shanghai Zhenhua President Lu Jianzhong attended the signing ceremony.
 

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