BEIJING, Dec. 14, 2015 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a leading
independent oilfield services provider operating primarily
in China, announced today that Beijing BHD Petroleum
Technology Co., Ltd. ("BHD"), a wholly-owned subsidiary of the
Company, won a major bidding contract with PetroChina Co., Ltd.
("PetroChina") and has been deemed a Class A Furnace Supplier
to all PetroChina's oilfield companies. With this bidding and
qualification, BHD will participate in PetroChina's furnace
procurement program, which was worth over RMB 2.9 billion (approximately $457 million) during the period Oct. 2015 to Sep.
2017.
The Company also announced today that BHD has secured a
RMB 3.22 million (~$0.5 million) contract to supply five furnaces
to PetroChina's Huabei Oilfield under this Bidding process.
The Centralized Procurement program is a major part of
PetroChina's procurement strategy, led by the Group Company of
PetroChina. Under this program, PetroChina collects material
requirements from its subsidiary companies and conducts a
strategic bidding process to secure a limited number of
designated suppliers. All purchases of related products are
then procured from the designated Class A suppliers who were
selected through the bidding process. This process helps PetroChina
and its suppliers establish long-term relationships and realize
mutual benefits and development. The bidding process for furnaces
began in October 2014, with around
130 suppliers competing in two rounds of bidding based on technical
and commercial performance standards. Only 27 companies were
selected in this process, of which 16 companies are PetroChina
affiliates or subsidiaries, eight are private companies qualified
as Class A suppliers and the remaining three qualified as Class B
suppliers.
Mr. Shenping Yin, Chairman and
CEO of Recon, stated, "This qualification and contract win is a
testament to our technical strength and service quality as one of
the leading independent oilfield product and service providers to
PetroChina. With this qualification, Recon now can participate in
all of PetroChina's furnace markets. Beyond our current client
base, such as Huabei Oilfield, Qinghai Oilfield and Jilin Oilfield,
we expect meaningful furnace orders from PetroChina's affiliated
oilfields, such as Daqing Oilfield, Jidong Oilfield, Tuha Oilfield
and Changqing Oilfield, to drive a healthy recovery of our furnace
business in the next few years. As there are only a limited number
of PetroChina approved suppliers, the competition is
significantly reduced. This will allow us to increase our client
base, while reducing resources devoted to building our client base,
and allow us to devote more of our efforts to product improvement
to better serve our clients.
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. For
additional information, please visit www.recon.cn.
Cautionary Statements
Statements made in this release with respect to Recon's
current plans, estimates, strategies and beliefs and other
statements that are not historical facts are forward-looking
statements about the future performance of Recon. Forward-looking
statements include, but are not limited to, those statements using
words such as "believe," "expect," "plans," "strategy,"
"prospects," "forecast," "estimate," "project," "anticipate,"
"aim," "intend," "seek," "may," "might," "could" or "should," and
words of similar meaning in connection with a discussion of future
operations, financial performance, events or conditions. From time
to time, oral or written forward-looking statements may also be
included in other materials released to the public. These
statements are based on management's assumptions, judgments and
beliefs in light of the information currently available to it.
Recon cautions investors that a number of important risks and
uncertainties could cause actual results to differ materially from
those discussed in the forward-looking statements, including but
not limited to, product and service demand and acceptance, changes
in technology, economic conditions, the impact of competition and
pricing, government regulation, and other risks contained in
reports filed by the company with the Securities and Exchange
Commission. Therefore investors should not place undue reliance on
such forward-looking statements. Actual results may differ
significantly from those set forth in the forward-looking
statements.
All such forward-looking statements, whether written or oral,
and whether made by or on behalf of the company, are expressly
qualified by the cautionary statements and any other cautionary
statements which may accompany the forward-looking statements. In
addition, the company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date hereof.
Contact:
Recon Technology, Ltd.
Ivy Xia
Tel: +86-10-8494-5799
Email: info@recon.cn
Weitian Investor Relations
Tina Xiao
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
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SOURCE Recon Technology, Ltd.