On June 12th, 2014, the first more than 400 sets of cementing and coiled tubing units by Jereh Group (SZ 002353), a world-leading oil and gas equipment manufacturer and engineering services provider, began its shipment to Petroleos de Venezuela SA (PDVSA), and the rest will be delivered before this September. The total amount is up to $190 million.
Signed in January 2013, 970 sets of oilfield equipment, including cementing, acidizing, coiled tubing, and nitrogen are ordered for PDVSA's first oil & gas service business. This project greatly enhances the market recognition of Chinese oil & gas equipment in South America, laying a solid foundation for the in-depth business development.
Although there is only four months left before delivery due to the unsetting situation, Jereh people provide high-quality products by the virtue of strong manufacturing capability including 42 ??continuous production stations and $33 million spares stock, and mature project control system, exceeding customer expectations as what it always does. It also proves the large project management of Chinese oilfield equipment manufacturing enterprises.
"Besides the 400 sets, Jereh's training team, more than 30 executives, technical, and after-sales engineers will be there for three months professional training to ensure the operation and maintenance," Mr. Jim Wang, Jereh-PDVSA project leader, said. There had been dozens of PDVSA operators coming to Jereh headquarters for systematic training in 2013. On the other hand, Jereh will continue localization to improve services in Latin America by establishing subsidiaries, offices and spare warehouse, thereby strengthening the after-sales system in Venezuela, Mexico, Brazil, Colombia, and Argentina. And American Jereh R&D center in Houston will also provide more timely technical support.
"PDVSA announced this year there will be $24 billion investment to increase oil & gas exploration and more cooperation with big oilfield service companies," said a senior analyst. "As the world's largest stimulation and completion equipment manufacturer, Jereh has been a model of Sino-Venezuela cooperation, which has great significance for the future win-win development."