HONG KONG, March 7, 2017 /PRNewswire/ -- Anton Oilfield Services (Group) ("Anton Oilfield Services" or "the Group") (HK: 3337), the leading independent oil and gas field technical service provider in China, is pleased to announce that the Group's general workover and well completion project in Southern Iraq market was successfully kicked off earlier on with the first well coming to a full and smooth completion today. Acquiring in the third quarter of 2015 with an amount of approximately US$140.0 million and a contract duration of 3 years, the project commenced in the fourth quarter of 2016 and officially embarked on the construction of the first well in late February 2017. It is expected that there will be a workload of 37 wells this year. Additionally, the Group has lately been awarded by the same customer a new water well workover and completion project with an estimated value of approximately US$16.5 million. The provision of services is expected to span for a term of three years.
The project is the first large-scale service contract Anton Oilfield has entered into with an International oil company in Iraq. Hampered by falling international oil prices, the project was on hold even since the bid had been awarded in 2015. In the second half of 2016, capitalizing on the oil price recovery, the customer kicked off the project implementation. Anton Oilfield reacted with a speedy preparation, completing the operation of the first well with the highest quality without delay.
In the midst of oil price downturn, the Group has gained a large number of orders by virtue of its competitive edges. While order backlog stays at its record highs, order conversion rate is inevitably low. Ever since of the third quarter of 2016, on the back of a recovery in international oil prices and in market sentiment, the Group's orders have gradually been picking up again with orders conversion rate on a rise. The project serves as the key undertaking the Group is having in its overseas markets. The official launch and successful execution of the project signify the initial success of the Group in the overseas market this year. This not only helps to raise the operating rate of the Group's orders in hand but also enhance customer recognition and bring forth new orders in the market. Riding on proactive adjustments and abundant order backlog during oil price downturn, the Group is set to enjoy a faster recovery and foster better scale development than its peers when the market goes back to its recovery path, helping to drive the Group back to high-speed growth track.
About Anton Oilfield Services Group
Anton Oilfield Services Group (HKEx stock code: 3337) is a leading independent integrated oilfield services provider. The Group provides products and services for the entire process of oil and gas development and production, including integrated services, drilling technology, well completion and oil production services. The Group has established an international network across China and overseas markets, providing products and services in 14 countries including China and those in the Middle East, Central Asia and Africa area and America. With its comprehensive product lines and integrated service capacity, the Group is empowered to help oil companies solve their challenges in increasing production, improving drilling efficiency, lowering costs and optimizing waste management. Its fast growth benefits from China's advantages in natural resources and the Group's increased presence in overseas markets. Anton Oilfield is the best independent Chinese oilfield services partner, the best Chinese partner worldwide. The Group's strategic objective is to become a leading global oilfield services provider with a solid foothold in China.
