Core Viewpoint - The company, Tongyuan Petroleum, is expanding its overseas market presence by establishing a subsidiary in Libya to enhance its competitiveness and business scale [1] Group 1: Market Opportunity - Libya has significant oil and gas resources, with proven oil reserves exceeding 48 billion barrels, ranking first in Africa and tenth globally [2] - The country is strategically located for oil and gas exports to Europe, making it a key player in European energy security [2] - Libya's oil production and export have been gradually recovering since August 2024, with the National Oil Corporation planning to increase crude oil production from 1.4 million barrels per day to 2 million barrels per day by 2028 [2] Group 2: Company Strategy - Tongyuan Petroleum's subsidiary, Yilong Hengye, has secured multiple high-quality oil service projects in Libya, including the 70DB drilling rig project and other operations [3] - The company aims to leverage its differentiated competitive advantages, such as advanced perforation technology, to enhance its market position [4] - Establishing a subsidiary in Libya will allow the company to deepen its integration into the local market and improve its competitive edge [5] Group 3: Financial Context - As of July 29, Brent crude oil prices increased by 7.25% and WTI prices by 6.30%, indicating a favorable market environment for oil service companies [4] - The oil service industry is experiencing high demand due to increased capital expenditure in the upstream oil and gas sector [4] Group 4: Global Market Expansion - The company has a comprehensive domestic market presence across major unconventional oil and gas development areas in China [5] - Internationally, the company is expanding its footprint in North America and regions like Algeria, Kazakhstan, and Libya, enhancing its global market layout [5]

Core Viewpoint - Despite recent fluctuations in international oil prices, the overall trend remains at a medium to high level, encouraging continued investment from oil extraction companies [1] Group 1: Oil and Gas Industry Investment - The oil service industry is benefiting from the sustained investment enthusiasm in upstream oil and gas due to strong crude oil prices [1] - Major oil-producing countries are increasing resource development efforts, with OPEC and non-OPEC countries planning to raise production by 548,000 barrels per day starting August [2] - Global upstream capital expenditure is expected to recover and exceed $582.4 billion by 2025, reflecting a 5% year-on-year growth [2] Group 2: Oil Service Companies' Opportunities - Oil service companies are experiencing increased demand for equipment and services, particularly in overseas markets, driven by positive investment expectations in upstream oil and gas [3] - Jerry Engineering received a contract worth approximately $8.5 billion from Algeria's national oil company for a gas booster station project [3] - China National Petroleum Engineering signed a contract worth $1.6 billion with TotalEnergies for a gas processing plant project in Iraq [3] Group 3: New Contracts and Market Expansion - Bomaike successfully entered the Suriname market with a contract valued between 750 million to 1 billion yuan for the construction of an FPSO upper module [4]