BEIJING, Nov. 7, 2017 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ:RCON), ("Recon" or the "Company"), a China-based independent solutions integrator
in the oilfield service, electric power and coal chemical
industries, today officially announced the completion of its
investment in a new subsidiary, Gansu BHD Environmental Technology
Co., Ltd ("Gansu BHD"), which focuses on oilfield sewage treatment
and oily sludge disposal projects. The Company now owns 51% of
Gansu BHD. With this investment in place, the Company offers a full
complement of environmental protection services and products,
including R&D, chemical agent production, equipment design,
construction and implementation of projects and services, and will
also materially enhance the Company's competitiveness in bidding
for larger projects.
Gansu BHD has purchased a 26,235.59 square meter land usage
right for 50 years in Yumen city, Gansu province China to construct a comprehensive disposal
treatment project with an annual processing capacity of 60,000 tons
of oily waste ("Project"). With the Project finished, Gansu BHD
will be a leading large scale processing project in China. The company expects this project to be
operational by June 2018, and will
mainly work for Yumen Oilfield Company, China's first petroleum production base and
also a PetroChina Co., Ltd. ("PetroChina") subsidiary, to process
its oily sludge and sewage. Annual revenue to be generated by the
Project is estimated to be over RMB 50
million.
Management Commentary
"The establishment of Gansu BHD is a crucial step of Recon's
development strategy, accelerating Recon's transformation from a
simple vender to an integrated engineering project and service
provider in China's oilfield
environmental protection industry," said Mr. Guangqiang Chen, director and CTO of Recon
Technology, "Yumen oilfield is located in the west part of Hexi
Corridor and south of Qilian
Mountain. It's been over 80 years since its first drill, and
massive oily waste induced from drilling, transportation and
refining process have been recurring problems for Yumen oilfield
and its affiliates. The launch of China's new environmental law and enhanced
environmental enforcement have created great need for new
methodologies and more economical processes. Yumen oilfield system
produces tens of thousands of tons of oily waste, not to mention
previously accumulated waste dumped in landfills. Based on the
requirement of Yumen oilfield and Gansu BHD technical advantage,
Recon resolution stood out among several completions with other
local companies and won appreciation from Yumen oilfield. All these
have been a solid support of our expansion into oily sludge market
and invest heavily into this project. Further, we expect that
companies with leading technical and service capability like Recon
will enjoy increased negotiating power while the industry is
relatively immature."
"Recycling and processing of oily sludge will not merely
eliminate pollution caused by oily waste and improve oilfield
environmental quality to fulfill social benefit and environment
benefits; it will also recycle more than 80% of crude oil included
in the waste, creating economic returns directly", said Mr.
Chen.
Mr. Chen continued, "China's
oilfield environmental protection industry, especially oily sludge
disposal and treatment segment is still at its early stage, and no
effective beneficiation technique is mature yet. Moreover, the
industry currently lacks discharge and disposal standards for oily
sludge. Historically, neglect in processing oily waste resulted in
landfilling and abandonment of waste on site, causing serious harm
to local groundwater and soil. As the central government has given
great importance to soil remediation, Recon believes this is a
unique opportunity to leverage its technical capabilities and
experience in the oilfield production industry and to further
enhance its leading position in China's oilfield environmental protection
industry for the benefit of shareholders' interests."
About Yumen Oilfield Company
Yumen Oilfield Company is a subsidiary of PetroChina Co., Ltd.,
located in Yumen City, Gansu
Province. It is China's
first petroleum production base, and has been in development since
1939.
About Recon Technology, Ltd. (NASDAQ: RCON)
Recon Technology, Ltd. is China's first listed
non-state owned oil and gas field service company on NASDAQ. Recon
supplies China's largest oil exploration companies,
Sinopec (NYSE: SNP) and CNPC, with advanced automated technologies,
efficient gathering and transportation equipment and reservoir
stimulation measure for increasing petroleum extraction levels,
reducing impurities and lowering production costs. Through the
years, RCON has taken leading positions on several segmented
markets of the oil and gas filed service industry. RCON also has
developed stable long-term cooperation relationships with its major
clients, and its products and services are also well accepted by
clients. For additional information please
visit: www.recon.cn .
Company Contact
Liu Jia, CFO
Recon Technology, Ltd.
+86 (10) 8494-5799
info@recon.cn
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SOURCE Recon Technology, Ltd.