RH Energy announces largest inspection services contract award for major natural gas pipeline project in south China

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RH Energy awarded engineering inspection services contract worth RMB 43 million by Petrochina at the China-Myanmar Oil and Gas Pipeline Project. Scope of services for two-year contract at the natural gas pipeline of the Guangxi section (827 km), include project management, technical consultancy, engineering and construction quality reviews and audits. RH Energy announces largest inspection services contract award for major natural gas pipeline project in south China

Two-year contract at China-Myanmar Oil-Gas Pipeline project worth about RMB 43 million

Singapore, 23 September 2011 – Singapore Exchange Mainboard-listed RH Energy Ltd (“RH Energy” or “the Company”, and together with its subsidiaries, “the Group”) announces that its unit in China has won the largest pipeline inspection services contract in the Group’s history. PetroChina, China’s largest oil and gas company, awarded the contract which has an expected revenue of RMB 42.67 million over a two-year period. RH Energy is one of the leading providers of integrated specialist technical services to the oil and gas industry in China. The contract was awarded to Group subsidiary, China Petroleum ZhongZhou Engineering Project Management Co. Ltd.

Under the contract due to be completed by 3Q 2013, the Group will provide engineering inspection services to the natural gas pipeline in the Guangxi section of the China-Myanmar Oil and Gas Pipeline. The section across the Guangxi Zhuang Autonomous region (广西壮族自治区) in southern China covers both the main and peripheral lines and extends a total length of about 827 km. The scope of responsibilities and services encompasses inspection and testing, project management, technical consultancy, engineering and construction quality reviews and audits.

Said RH Energy Executive Chairman and CEO, Mr Wang Hairong (王海荣), “This award represents a significant milestone for R H Energy’s inspection group. We are extremely pleased to be selected as a trusted services provider for the important China-Myanmar Gas Pipeline project. It is a tribute to our reputation for consistent, reliable performance in inspection services to the oil and gas industry. We look forward to continue building on our success in China.”

When completed, the China-Myanmar Gas Pipeline is expected to transport up to 12 billion cubic metres of natural gas per year from Kyaukryu in the west coast of Myanmar to China’s southern provinces of Yunnan, Guizhou and Guangxi. Construction of the pipeline by China National Petroleum Corporation (CNPC), China's state-owned oil and gas supplier and the parent company of PetroChina, officially commenced in June 2010 and is expected to be completed in 2013i. The entire length of the China-Myanmar Gas Pipeline exceeds 2,580 km in length. ii.
 
In March and June 2009, China and Myanmar finalized agreements for the construction of the China-Myanmar Oil and Gas Pipeline comprising a US$1 billion natural gas pipeline and a US$1.5 billion crude oil pipeline running parallel to each other. The gas pipeline has a designed transport capacity of 12 billion cubic meters annually and the oil pipeline, a designed transport capacity of 22 million tonnes per year. CNPC holds 50.9% stake in the China-Myanmar pipelines with the remaining stake held by Myanmar’s national company, Myanmar Oil and Gas Enterprise (MOGE).

None of the Directors or the substantial shareholders of R H Energy have any direct or indirect interest in the award. The award is not expected to have a material impact on our earnings per share and the net tangible asset per share of RH Energy for the financial year ending 31 December 2011.

Notes to Editor
(i) http://english.peopledaily.com.cn/90001/90776/90883/7137 ...
People’s Daily Online, 11 September 2010, Construction starts on China section of Sino‐Myanmar oil‐gas

(ii) http://www.cnpc.com.cn/en/press/newsreleases/MyanmarChin ...
China National Petroleum Corp News Release, 4 June 2010, Myanmar‐China Oil and Gas Pipeline project


About RH Energy Ltd

Founded in 1998 in Singapore, our Group is now one of the leading integrated specialist technical services providers to the oil, gas and petrochemical industry in the PRC, with capabilities to provide their customers with integrated customized design, engineering, procurement, fabrication, on-site installation and commissioning services, as well as round-the-clock value-added services and technical support.

RH Energy’s production and manufacturing facilities are strategically located in Langfang, Hebei Province, 37km from Beijing. The facilities are in close proximity to the Company’s three main customers - PetroChina, CNOOC and Sinopec; and other major operators of the PRC’s oil & gas industry. R H Energy is also the preferred partner of leading global principals who are the market leaders in their respective product segments. For more info, pl visit http://www.rhenergy.com.sg

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