ZPEC subsidiary signs RMB 299 million drilling contract

On the evening of 18 June, Chinaman Oil (603619) announced that the company’s wholly-owned subsidiary, Man Oil Drilling Technology Ltd. (the “Chinaman Drilling”) had entered into a contract for drilling works with the China Petroleum Group Western Drilling Engineering Company Ltd. (the “Western Drilling Company”) for a contract of $299 million.

　　According to the announcement, the place of implementation of the contract was in the Xinjiang oil field area and the contract was expected to run from 29 May 2019 to 31 December 2020. The project contract amount represented approximately 21.53 per cent of the audited business income of Central Mann Oil in 2018. The project contract, the second since the first cooperation with Western Drilling Company in the past year, represents the combined drilling capacity of the Central Drilling Company, which has been recognized and will provide a solid basis for the future expansion of its operations in Xinjiang market.

　　Chinaman Oil suggests that the performance of this contract will have a positive impact on the company ‘ s performance from 2019 to 2020, the extent of which will be determined by the actual workload of each year. The amount of the settlement of the contract may vary due to actual workload, changes in the order of the A, etc., and uncertainties.