WSP Holdings Wins Major Contracts to Supply OCTG Products to Chinese Oil and Gas Companies
2nd February, 2009
WSP Holdings Limited (NYSE: WH) ("WSP Holdings" or the "Company"), a leading Chinese manufacturer of API (American Petroleum Institute) and non-API seamless casing, tubing and drill pipes used in oil and natural gas exploration, drilling and extraction ("Oil Country Tubular Goods" or "OCTG"), and other pipes and connectors, today 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 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."
About WSP Holdings Limited
WSP Holdings develops and manufactures seamless Oil Country Tubular Goods (OCTG), including seamless casing, tubing and drill pipes used for on-shore and off-shore oil and gas exploration, drilling and extraction, and other pipes and connectors. Founded as WSP China in 1999, the Company offers a wide range of API and non-API seamless OCTG products, including products that are used in extreme drilling and extraction conditions. The Company's products are used in China's major oilfields and are exported to oil producing regions throughout the world. The Company's website is http://www.wsphl.com .
Safe Harbor Statements
Safe Harbor Statements Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in principal product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise to the public any forward-looking statements, whether as a result of new information, future events or otherwise. This press release was developed by WSP Holdings, and is intended solely for informational purposes and is not to be construed as an offer or solicitation of an offer to buy or sell the Company's stock. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by WSP Holdings to be accurate, nor does WSP Holdings purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
Wsp Holdings - Chinese Oil