BEIJING, May 23, 2012 /PRNewswire-Asia-FirstCall/ -- Recon Technology, Ltd (Nasdaq: RCON), a Chinese non-state-owned oil and gas automation services provider (the "Company"), announced today that one of its variable interest entities, Nanjing Recon Technology Co., Ltd. ("Nanjing Recon"), signed a major contract with the China National Petroleum Corporation's ("CNPC") Sichuan Petroleum Administration Bureau to provide the latter with the Emerson PCS & SIS Systems in its South Yolotan Gas Field Project (the "Project") located in Turkmenistan. The total contract value exceeds RMB19 million ( USD3.02 million), which was by far the biggest contract for the Project's PCS & SIS Systems. Under the contract, Nanjing Recon will not only provide all hardware and software related to the PCS & SIS Systems, but is also responsible for the procurement, production and installation of the systems and the after-sale services. The Project is significant in scale, advanced in technology and sophisticated in the overall design. As the systems involve all steps of the natural gas extraction process, they require intricate engineering techniques. Nanjing Recon is closely involved in the overall design of the automation control and undertakes the most critical step in designing the Emerson PCS & SIS Systems. The systems are expected to be delivered before May 30, 2012 and the entire project is expected to be completed by the end of year 2012. "Located in Turkmenistan, the South Yolotan Gas Field is the largest natural gas field in the world with proved reserves of 7 trillion cubic meters," Mr. Yin Shenping, Recon's CEO, said. "CNPC signed the joint development agreement with the gas field in 2011 and is at the stage of researching and developing key techniques. We are very fortunate to have this opportunity to work with CNPC outside China at this critical stage. Our cooperation marks the first time Recon undertakes a foreign project and is an excellent first step for Recon to grow into an international company. This is also the first time Recon introduces the Emerson systems to the Central Asian market. We believe this project will lay a solid foundation for our automation business and will become a launch pad for additional large-scale overseas projects. As part of our overseas expansion strategy, we will take this opportunity to gain experience and win additional projects." "The Emerson PCS & SIS Systems we supply focus mainly on automation solutions for the gathering and transmission of natural gas," Mr. Yin continued. "We won this contract thanks to our continued efforts in this area. First of all, Recon has cooperated with CNPC for more than 10 years. We have accumulated enough experience in initial designing and on-site implementation. We believe this project attests to our capabilities and experience in project management. Secondly, we have established a long-term strategic relationship with Emerson, which assures best products to our clients. Moreover, Recon has been consistently investing in the training of its service staff. Through its experienced team, Recon is able to provide the most cost-effective solutions and timely services of the highest quality. We believe we are capable of successfully implementing large-scale projects and further burnishing our reputation among our clients. We look forward to servicing our clients with a broader offering of state-of-the-art products and services."
Recon Technology (RCON) shares gain after the company receives contract (subcontractor) qualification from Jianghan Oilfield Construction Engineering Company, a subsidiary of China Petroleum & Chemical (SNP).