HONG KONG, July 16, 2012 /PRNewswire-Asia/ -- Anton
Oilfield Services Group ("Antonoil" or the "Group", HKEx stock
code: 3337), the leading independent oilfield services provider in
China, is pleased to announce that
it has successfully won the tender and will enter into a framework
agreement for the provision of oil-based drilling fluid services to
a batch of wells in the Tarim area with an agreed service price
based on the workload for 8-10 jobs. This agreement not only
establishes the Group's position in the industry, but will also
have a positive impact on the Group's annual results. Antonoil has
secured a confirmed number of batch orders less than half a year
since the establishment of its drilling fluid service department at
the beginning of this year, marking the initial success of the
Group's strategy in developing its drilling fluid services business
and a step forward in achieving its aspiration of becoming a
leading drilling fluid services brand in the PRC market.
According to the agreement, Antonoil will provide oil-based
drilling fluid services to the ultra-high pressure and ultra-high
temperature conventional natural gas wells in the Tarim area. Based
on a workload for 8-10 jobs, the agreement sets the lowest price
for a single job at approximately RMB 9
million. The actual number of jobs will be finalized in
accordance with the client's progress in production, though more
than eight jobs are expected to be successively launched for
operation and completed by the end of this year.
Mapping overall development plans for the drilling fluid
business
Understanding that drilling fluid technology constitutes a vital
part of oil and gas field technical services, Antonoil has laid out
a long-term strategy for its drilling fluid services business. It
established its drilling fluid services unit at the beginning of
this year and selected the high-end market in the Tarim area as its
path to entering the market. The Group then entered into a
strategic partnership with Magcobar, a China-based joint venture of M-I SWACO (a
Schlumberger company) specializing in drilling fluid technology.
Leveraging Antonoil's in-depth local knowledge and operational
experience and Magcobar's world-class expertise in oil-based
drilling fluid, the partnership brings the two companies together
to jointly develop oil-based drilling fluid services in the Tarim
region. Meanwhile, the Group quickly completed the construction of
a local mud plant to provide recycling, storage, processing,
reprocessing for drilling fluids that provide critical support for
the operation of oil-based drilling fluid services. With their
respective core strengths, Antonoil and Magcobar soon made joint
bids and took part in joint operations in the second quarter and
have soon provided oil-based drilling fluid services for three
wells in the Tarim region. The joint operations achieved remarkable
results and won high acclaim from the client. Backed by this track
record, Antonoil had the advantageous position to win this order of
8-10 jobs, strengthening the Group's market position in the
area.
Furthermore, the Group announced in May the acquisition for a
55% stake in the Bazhou Companies, a renowned high-end water-based
drilling fluid company with strong influence in the Tarim area. The
Bazhou Companies' high-end water-based drilling fluids have proven
to be an effective solution to the difficulties in the drilling
fluid area encountered at the highly challenging complex wells and
ultra-high temperature wells in the Tarim area. They are
complemented by a strong team of experienced engineers and possess
integrated service capabilities that range from R&D,
production, on-site configuration to on-site operations. Following
the acquisition, the Group at one stroke possessed a diverse
product mix of its drilling fluid business with enhanced R&D
capabilities and a strengthened talent base.
Thanks to its comprehensive efforts in building its business,
Antonoil's drilling fluid services business now boasts a workforce
of over one hundred experienced engineers along with both oil-based
and water-based drilling fluids, which altogether provide strong
service offerings that will make Antonoil a leading drilling fluid
service brand in China.
Bright prospects for the drilling fluid services market in
China
There is a vast drilling fluid services market in China, especially in the Tarim area, where a
complex geological environment presents perplexing engineering
challenges in the areas of drilling and drilling fluids. According
to reports by China Petroleum Daily published in January this year,
the Tarim Oilfield will be developed into "the Daqing of Xinjiang",
which will be achieved through a "three-step strategy" in which
production at Tarim is planned to maintain at 20 million tons of
oil equivalents of oil and gas from 2010 to 2012, to be stepped up
to 30 million tons from 2013 to 2015, and to achieve a target of 40
million tons from 2016 to 2019. In view of this, the speed of
drilling in Tarim must be accelerated in order to fulfil the
doubled production target, and the lead time and quality of
drilling will largely depend on drilling fluid technology. As a
result, the demand for drilling fluid services will surge in the
Tarim, thus creating a key growth engine in the drilling fluid
services market in China.
Its success in entering into a framework agreement in the Tarim
area enables the Group to make a strong entrance into market, and
to accumulate sophisticated operational experience in the high-end
market. Such experiences will provide a solid foundation on which
the Group provide its premium services to other markets in
China, thereby paving the way for
Antonoil to become the leading drilling fluid service brand in
China.
About Anton Oilfield Services Group
Anton Oilfield Services Group (HKEx stock code: 3337) is a
leading independent oilfield services provider offering one-stop
oil and gas field technical development services to oil companies.
Its services and solutions span across the drilling technology,
well completion, down-hole operation, and oil production phases in
the development cycle. Its fast growth benefits from the expanding
development of natural gas in China and the Group's increasing presence in
the overseas markets. At the same time, Antonoil is committed to
continuously strengthening its R&D capabilities and making
additions to its talent reserves. The Group's strategic objective
is to become a global oilfield services provider with a solid
foothold in China.
Antonoil is headquartered in Beijing with sales offices and operations
bases across China's major onshore
oil and natural gas basins. The Group also has an international
headquarters in Dubai with an
extensive network across the Middle
East, Central Asia,
Africa, and Americas.
SOURCE Anton Oilfield Services Group
