Honghua Group (Hong Kong Stock Code: 196.HK), a leading global land drilling rig manufacturer, entered into a three-year Memorandum of Understanding for Strategic Cooperation Framework (the MOU) with General Electric (China) Co. Ltd. (GE) on May 5, 2014. The companies will jointly endeavor to develop Honghua's innovative integrated gas power solution for oil and gas field and actively capture the huge opportunity of the development of conventional and unconventional energy in China.
According to the MOU, Honghua and GE will jointly develop an efficient, energy-saving and environmentally friendly integrated oil and gas drilling solution. Honghua will install GE gas power products, including aero derivative gas turbine and gas engine in its self-developed and manufactured innovative oil and gas drilling equipment, and will complete the integration in the group's production base in China. This equipment will be developed as an integrated on-site power solution for well drilling, well completion and output production by using conventional / unconventional natural gas or associated gas in the field. The power solution can also be applied to single operation, such as drilling, fracturing and water/gas injection.