Recon Technology, Ltd., a leading independent solutions integrator in oilfield service, electric power and and coal chemical industries operating in China, announced the Company has won several contracts totaling approximately RMB 6.1 million, or approximately USD 0.9 million, to develop four Internet of Things (IoT) Oil and Gas Production Projects (the "Projects") for three plants of PetroChina Changqing Oilfield Company (PCOC), China's largest producing oilfield company and a subsidiary of PetroChina.
IoT is the practice of capturing, analyzing, and acting on data generated by networked objects and machines. The Project is designed to improve production efficiency through a new generation of smart sensors that perceive production data in the oil extraction, and gathering and transferring processes and detect errors in the process on a timely basis.
The Recon IoT solution integrates sensors, communication devices, and analytics associated with the above-mentioned Projects located in Shanxi Province for several plants of PCOC. Recon's solution collects the data about oil pressure, casing pressure, load, indicator diagram, three-phase current, voltage, active power, reactive power, power factor and wellhead real-time image during the production process of pumping units to transfer to the backstage data center for intelligent data analysis to provide production guidance.
Recon expects to complete its work on the Projects by December 31, 2017, and anticipates reporting relevant revenues in fiscal 2018.
Mr. Shenping Yin, Chairman and CEO of Recon stated, "These new contracts mark a major achievement for Recon's automation business. As discussed in our recent letter to shareholders, we felt that a nimble company like Recon could take advantage of the digitization of the oil and gas industry to help improve efficiency and safety.
We are excited to participate in the IoT Projects, as PetroChina builds China's full-scale digital oilfield. Recon has supported PetroChina's efforts for more than 15 years, and these new contracts represent Recon's position within the field of electronic and intelligent engineering and creates a foundation for future cooperation on similar projects for PetroChina's other sites.
Our goal is to continue leveraging the strength of our technological capabilities to cultivate our relationship with PCOC and other project owners, which we anticipate will lead to further contracts in the coming months and years."