TSC, Lanshi Equipment to Jointly Bid for Offshore Rig Tenders

On 11 July, 2013, TSC Group Holdings Limited signed a strategic cooperation agreement with Lanzhou Lanshi Oil Equipment Engineering Co., Ltd (“Lanshi Equipment”) , which marks the formal establishment of the strategic alliance between both parties.

The two parties will cooperate on equipment supply, promotion, after-sale services and global networking etc., to enhance their mutual growth and market share for both the onshore & offshore rig market.

Lanshi Equipment was previously Lanzhou Lanshi National Oilwell Petroleum Engineering Co., Ltd. In April 2013, Lanshi Group renamed the company to Lanshi Equipment. Lanshi Group has been established for 60 years and is one of the largest manufacturers of oil drilling equipment in the world. It has been supplying the vast majority of the operational rigs throughout the oilfields in China since before the year 2000. Lanshi’s prestigious reputation, together with its years of experience, makes it a highly competitive player within the land rig industry.

TSC Group is a global product and service provider, serving both the onshore and offshore drilling industries worldwide. Until now, drilling equipment from TSC has been deployed on over 80 offshore drilling platforms, with the crane and exhaust pipe lifting systems being particularly highly regarded by customers worldwide. In addition, TSC offers a global network in many countries and regions including North America, South America, Asia Pacific, China, Singapore, the Middle East, North Africa and Europe, and it guarantees a world class after-sale service for all its customers.

Under the strategic agreement, both parties will combine their core strengths and competitive advantages to their mutual benefit, thus ensuring a win-win relationship. Lanshi will make full use of the global network of TSC to further expand their land rig market worldwide. TSC on the other hand will benefit from the world class manufacturing facilities that the Lanshi Group has which it will use to meet the growing demand for TSC’s own products. TSC will also provide Lanshi, with competitive prices for their solid control systems, electric control systems, as well as MRO’s and maintenance services, so as to enable TSC to take a bigger market share in the oil and gas equipment industry.

Joint bidding for rig tenders

In addition, both parties will in the future jointly bid for additional offshore and land rig drilling tenders. By combining their respective strengths and competitive advantages in this bidding process they will be able to gain significant advantages over their competitors. This cooperation will enable them to support each other in the offshore engineering and the land rig business by sharing personnel, technologies and facilities. TSC has also established a branch office in South America to explore opportunities there, which they feel to be significant. The cooperation with Lanshi Equipment will inevitably enhance TSC’s reach and capability in the land rig market and greatly enhance the marketing of its products in to South America.

The integration of both parties’ core strengths will on one hand enable them to both gain additional business across a wider customer base as well as being able to improve the quality of their services, which in turn will attract more customers to choose them over their competitors. This cooperation will consolidate both parties position within the oil and gas industry while enabling them to expand further into the onshore and offshore rig market.

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Press Release, July 12, 2013