China-based Honghua Group, a leading global land drilling rig manufacturer, said it has entered into an agreement worth $26 million with an Iraqi firm to provide oilfield drilling services for the company.

The deal signed early this month further consolidates Honghua's leading position in the Middle East market.
 
As per the agreement, the Chinese firm will provide drilling services using two rigs which are expected to gradually begin operations in August and September. In addition, the oilfield services agreement also includes the subsequent optional drilling services provided by the company.

On the project win, Honghua Group chairman Zhang Mi, said: "By virtue of our high quality and self-developed drilling equipment, experienced oilfield services team, and the excellent sales record of land drilling rigs in the Middle East region, we are able to further expand the oil and gas engineering services business and consolidate our leading position in the Middle East market."

"We will continue to expand the business layout from equipment manufacturing to engineering services by taking the drilling business as the core, and to capture the enormous opportunity rising from the recovery of the global oil market in the future," stated Honghua.

"Looking ahead, the company will strive to strengthen technological innovation and service quality, further reinforce the main international market layout in the Middle East, Russia and South America, as well as to promote the synergy between strategic business segments, thus to provide significant momentum for HH's long-term steady development," he added.-TradeArabia News Service