Business
Recon Announces RMB9 Million Contract for Disposal of Oil Sludge from Yumen Oilfield
BEIJING, Sept. 7, 2021 /PRNewswire/ -- Recon Technology Limited (NASDAQ: RCON) ("Recon" or the "Company") today announced that its subsidiary, Gansu BHD
About this update from Recon Technology, Ltd.
[{"type":"text","content":"BEIJING, Sept. 7, 2021 /PRNewswire/ -- Recon Technology Limited (NASDAQ: RCON) (\"Recon\" or the \"Company\") today announced that its subsidiary, Gansu BHD Environmental Technology Co., Ltd (\"Gansu BHD\"), and Yumen Oilfield Engineering Construction Co., a wholly-owned subsidiary of China National Petroleum Corporation (\"CNPC\" or \"PetroChina\"), signed a service contract for the hazardous waste disposal technology service project of various oil production plants of Yumen Oilfield. The contract amount is approximately RMB9 million (approximately USD1.4 million) and the contract period is one year.\nAccording to the contract, Gansu BHD is required to transfer and safely dispose of about 6,000 tons of hazardous waste such as oily sludge temporarily stored in various oil production plants in Yumen Oilfield.\nGansu BHD has a 50-year land use right for 26,235.59 square meters in Yumen City and built a production line with an annual treatment capacity of 60,000 tons of oilfield oily waste comprehensive utilization and harmless comprehensive disposal (the \"Oil Sludge Treatment Project\") with a cumulative investment of approximately RMB40 million. Gansu BHD has also achieved a necessary and scarce hazardous waste operating permit issued by the Jiuquan Environmental Protection Bureau in Gansu province. The Company currently owns a 70% interest in Gansu BHD.\nManagement Comments\nMr. Chen Guangqiang, Founder and CTO of Recon, said, \"We are delighted to have won the contract of the sludge disposal for several oil production plants in the Yumen Oilfield. Since we started production in 2019, we have been awarded six contracts for the disposal of sludge from oil production plants under the Yumen Oilfield, with the service tonnage of individual contracts increasing from tens of tons to hundreds of tons to thousands of tons per contract. Gansu BHD's sludge treatment project line is currently the only such treatment facility in Gansu Province. Gansu BHD has taken the lead in developing the domestic oil sludge treatment technology and has been continuously improving its own production and treatment process. This is the basis for us to continue to gain recognition from oilfield companies and obtain new service contracts. Gansu BHD has signed an aggregate of about RMB18 million (approximately USD2.8 million) in service contracts.\"\nMr. Chen...