TSC Group Holdings Limited (“TSC”) is very pleased to announce that its new span-offs and NEEQ listed company TSC Oil and Gas Services Group Holdings Ltd. (“TSC OGS”) has recently secured the first batch MRO service contracts for the refurbishment and automation of 2000HP Land rigs owned by Pemex Perforación y Servicios (“PPS”), a subsidiary of the Mexican national oil company ("PEMEX") with a contract value of US$11.2 Million. TSC would provide PPS with PCR, drawworks retrofit and upgrading services as well as supplying mud pumps, hydraulic power units and top drive products. And TSC will work closely with its partner Andrew Technologies, Inc. (“ATI”) to accelerate contract execution and further deeper cooperation.
This is a convincing proof for TSC to win customer’s recognitions in the backdrop of the “severe winter”. With the global oil prices plummeted in mid-2014, PEMEX carried out strategic reorganization to reduce capital expenditure. TSC and ATI witnessed customer’s needs in its cost reduction strategy while maintaining high efficient rig fleet and have been working closely with PEMEX/PPS to provide flexible and high performance services and cost effective supports to meet their cost strategies. The successful cooperation will greatly leverage resources and confidence in the future development of the potential market in Mexico.
The contract is also an important breakthrough in TSC’s development to readjust and improve its competitiveness with re-focusing on several key markets, which has achieved significant results. Moreover, this is also a significant milestone for TSC in its long-term business development in North and Central America. As the project unfolds, TSC is confident with its expansion plans in North and Central America to achieve significant growth and progress.
[ABOUT TSC Group (00206) HK] TSC, a HKEx main board listed company, specializes in the engineering, manufacturing and assembly of high-end offshore equipment and packages for all types offshore rigs world-wide. TSC provides versatile offshore infrastructure solutions for global offshore oil & gas exploration and development, including offshore rigs, production platforms, intervention platforms, accommodation platforms, plug and abandonment, decommissioning platforms as well as other offshore infrastructures.
[ABOUT PEMEX] PEMEX is the largest company in Mexico. It operates through the whole chain of value of the industry, from exploration and production -upstream- to industrial transformation, logistics and marketing –downstream. PEMEX is generating approximately 2.5 million barrels of oil daily and more than 5.6 billion of cubic feet of natural gas. PEMEX has 6 refineries, 8 petrochemical complexes and 9 gas processing complexes, where they produce multiple refined products in order to attend to their customer’s needs. Logistically, PEMEX has 83 land and maritime terminals, as well as oil and gas pipelines, maritime vessels, and varying fleets of ground transportation in order to supply over 10,000 service stations throughout the country.
[ABOUT TSC OGS (837290)] TSC OGS is a TSC Group Holdings Limited (“TSC”) (HK 00206) wholly owned subsidiary, incorporated in Qingdao. Currently, OGS is comprised of 8 subsidiaries globally and has a registered capital of 190 million yuan. OGS has a facility in Qingdao covering 100 acres of space and an engineering technology center in Houston, US. The company’s main business includes the manufacturing and supply and services of maintenance, repair and operation (“MRO”) expendables for the oil and gas industries. It also invests certain oil and gas properties in the North America. OGS has manufacturing facilities, service and sales offices located in China, USA, Canada, Mexico, Venezuela, Colombia, Brazil, Dubai and Russia.