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January 20th, 2015, Shanghai—Hilong recently signed a contract with CNOOC China Limited, a wholly-owned subsidiary of CNOOC Limited, to provide offshore pipe-laying service for the East China Sea Project of CNOOC China Limited, which amounts to about USD 60.1 million by using its offshore pipe-laying vessel “Hilong 106”. This is the second time that Hilong has won an offshore pipe-laying service contract with CNOOC China Limited, following its securing of the pipe-laying service contract for the Weizhou Phase II Project last November.

This is an EPCI service contract covering a series of work such as the general scheming of construction, procurement of materials, offshore construction and project management. This project is to lay two undersea oil pipelines that cover 38 kilometers in total between platforms.

Compared to the previously won pipe-laying service contract for the Weizhou Phase II Project, this project is more challenging in its construction. In the meantime, the line pipe coating and concrete weight coating service as well as the CRA-lined Steel Pipe manufactured by Hilong will be used throughout the construction. This, along with the Pipeline Technology and Services of Hilong, will produce synergistic effect and make a good beginning for Hilong to provide integrated services in the field of offshore engineering.

“These two major contracts, under the current market condition, provide Hilong with a new source of revenue, effectively enhance the company’s risk resisting capability, and inject new energy into Hilong for sustainable growth,” said Hilong President Zhang Jun.

“Based upon its in-depth interpretation of China’s energy policy as well as the development trend of the global energy industry, Hilong has developed the significant strategy for marching into the field of offshore engineering service. Hilong, through open bidding, has won pipe-laying service contracts with CNOOC China Limited for two major projects in a row, becoming the first private enterprise that has secured such large-scale contracts in the domestic offshore engineering service industry. This achievement, remarkable in the industry, shows that Hilong has won high recognition and trust for ‘Hilong 106’ and the offshore engineering team of Hilong from domestic high-end clients, of which CNOOC China Limited is representative,” emphasized Zhang Jun, “Hilong will strive to secure more high profile contracts for ‘Hilong 106’ from both domestic and international high-end clients, and will have both confidence and strength to make greater achievements in the field of offshore engineering service.”