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Honghua Group team-up with GE to develop integrated oil and gas drilling equipment

07th May 2014

Honghua Group has signed a three-year memorandum of understanding (MOU) with GE on May 5, 2014, and will jointly endeavour to develop Honghua’s integrated gas power solution for oil and gas field, and capitalise on the development of conventional and unconventional energy in China

Honghua Group team-up with GE to develop integrated oil and gas drilling equipment
The cooperation with GE, the international leading provider of power equipment and engines, supports this integrated solution for unconventional oil and gas exploration and exploitation - Zhang Mi, Honghua chairman

According to the MOU, Honghua and GE will leverage their unique strengths in the oil and gas drilling equipment field to jointly develop an efficient, energy-saving and environmental-friendly integrated oil and gas drilling solution. Honghua will install GE gas power products, including aero derivative gas turbine and gas engine in its self-developed and manufactured innovative oil and gas drilling equipment, and will complete the integration in Honghua’s production base in China.

The equipment will be developed as an integrated on-site power solution for well drilling, well completion and output production by using conventional/unconventional natural gas or associated gas in the field. The power solution can also be applied to single operation, such as drilling, fracturing and water/gas injection.

Zhang Mi, chairman of Honghua commented: “Honghua announced its innovative integrated solution for unconventional oil and gas field under the concept of ‘exploiting gas by using gas; simultaneously producing gas and electricity’ in 2010. The cooperation with GE, the international leading provider of power equipment and engines, supports this integrated solution for unconventional oil and gas exploration and exploitation.

“In the future, the oil and gas drilling equipment of Honghua will be equipped with GE Waukesha gas engines, which will greatly save as much as 80 per cent fuel costs, optimize operating efficiency of drill rig and significantly reduce greenhouse gas emissions by 95 per cent. Thus, it will allow our clients to increase operational efficiency and reduce production cost, promoting the development of the shale gas industry in China and the world. We believe the cooperation between two parties will increase the competitive advantages and sales of Honghua’s drilling rig products, and further realise its efficient, energy-saving and environmental-friendly integrated shale gas solution at the same time. The cooperation with GE will enable us to grasp the market opportunity derived from shale gas exploration and boost the rapid development of our business.”

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