Recon Technology Signs $0.6 mln Deal with PetroChina’s Quinghai Oilfield

Recon Technology, Ltd. announced that Beijing BHD Petroleum Technology Co., Ltd., a subsidiary of the Company, has executed an agreement with Qinghai Oilfield, a PetroChina Co., Ltd. subsidiary, to sell chemical agents to Qinghai Oilfield

The Chemicals, including Ion Modifiers and Water Quality Stabilizers, are designed and tested by BHD and are to be used for wastewater treatment at the Qinghai Oilfield. This Agreement, which is valued at RMB 3.98 million (~$0.6 million), is expected to be completed by the end of FY2016.   

This Agreement follows BHD's recent win of a major bidding contract with PetroChina that qualified BHD as a Class A Furnace Supplier to all of PetroChina's oilfield companies and a RMB 3.2 million (~$0.5 million) contract to supply five furnaces to PetroChina's Huabei Oilfield.

"We continue to grow our presence at PetroChina's oilfield companies," said Mr. Shenping Yin, Chairman and Chief Executive Officer. "Today's announcement follows months of efforts by our BHD team and marks another breakthrough for us with PetroChina as we seek opportunities to expand our product and service offerings. The oilfield waste water treatment segment is a brand new market for Recon. Aside from the chemicals, we expect to provide more professional waste water treatment equipment to our oilfield client in the coming year, which we are in the process of developing now. We are optimistic that this consignment sale of third party chemicals has the potential to evolve into a new line of business on a recurring basis for Recon."

About Recon Technology, Ltd.

Recon Technology, Ltd. (NASDAQ:  RCON) ("Recon") is China's first independent oil and gas field service company to be listed on NASDAQ. Working closely with leading global partners, Recon has achieved rapid growth supplying China's largest oil and gas exploration companies, including Sinopec and China National Petroleum Corporation, with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures. The solutions Recon provides are aimed at increasing gas and petroleum extraction levels, reducing impurities, improving safety and lowering production costs. 

Source: PR News Wire