WSP Holdings Wins Major Supply Contracts from Chinese O&G Cos
WSP Holdings has announced that its wholly-owned subsidiary, Wuxi Seamless Oil Pipes Company Limited ("WSP China"), won several contracts to supply a total of 142,777 metric tons of OCTG ("Oil Country Tubular Goods") to China National Petroleum Corporation ("CNPC"), China Petroleum & Chemical Corporation ("SINOPEC"), and Shaanxi Yanchang Petroleum (Group) Co., Ltd. ("Yanchang Group").
Under the contract with CNPC, which the Company won in a bidding process, the Company has agreed to supply an aggregate of 90,202 metric tons of OCTG to CNPC. There were a total of 39 prequalified state-owned and private PRC OCTG manufacturers that participated in the bidding process held by CNPC. Of the 90,202 metric tons to be supplied by the Company, more than 70,000 metric tons will be API casing and tubing manufactured from steel of N80 grade or above, which is of higher quality and more expensive than the steel used in ordinary API products. The Company is in the process of signing the purchase contract resulting from this winning bid and expects to complete the deliveries of its orders by the end of June 2009.
In addition, WSP Holdings received direct purchase orders for a total of 52,575 metric tons of OCTG from CNPC, SINOPEC and Yanchang Group. About half of the orders are for API casing and tubing manufactured from steel of N80 grade or above. The Company expects to complete over 95% of the deliveries of these orders by the end of June 2009.
"As one of the top three OCTG manufacturers in China, our successful bid to supply OCTG to CNPC and recent new orders for OCTG from CNPC, SINOPEC and Yanchang Group confirm that our products have gained increasing acceptance from China's major oil and gas companies. We have once again shown that our product qualities and prices are competitive with the products and pricing by other well-known domestic OCTG producers," commented Mr. Longhua Piao, Chairman and CEO of WSP Holdings. "The successful bid and purchase orders give us a great start in 2009. These orders expand our domestic market share and will attract greater awareness of and acceptance of our products by other domestic and overseas oil and gas companies."
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