Egyptian Drilling Company Project

• Project Overview

On July 21, 2024, Warom Technology Incorporated Company formally signed a cooperation agreement with Egyptian Drilling Company (EDC). This order represents the largest single-contract transaction value with the client in the company’s history, marking a significant breakthrough in the cooperation between the two parties in the field of oil and gas drilling equipment.

The core products to be delivered under this cooperation are explosion-proof lamps and distribution boxes, with specific models including the Explosion-proof Lighting fixtures BAY51-Q 36x2XJ, HRFY-G-LED 28*2BJ and HRJ-60/40KJ, as well as the distribution Panels HRMD91. The total delivery volume consists of 574 sets of explosion-proof lamps and 5 distribution boxes. The contract explicitly stipulates that all products shall be manufactured and ready for shipment by September 30 of the same year.

The successful finalization of this order followed two months of multi-round commercial negotiations, making it a typical project with a tight timeline and urgent delivery requirements. Faced with the pressing construction schedule, the company coordinated the entire workflow spanning material preparation, production manufacturing and quality control, and completed the production of all products on schedule through an efficient and collaborative operation mode, laying a solid foundation for smooth delivery.

The successful performance of this contract is not only a crucial milestone in Warom Technology’s market expansion in Egypt, but also effectively enhances the company’s brand influence and performance standing in the Egyptian drilling platform sector, accumulating valuable experience for further developing the oil and gas equipment market in the Middle East.

• Customer background and challenges

EDC is one of the leading drilling contractors in Egypt and the MENA region; established in 1976 in partnership with Maersk Drilling, EDC is now 100% owned by Egyptian General Petroleum Corporation (EGPC) and other shareholders from the Egyptian petroleum sector. EDC owns and operates over 70 rigs, including six jack-ups, two offshore platform Rigs, and the rest being on shore Rigs with a variety of drilling, work-over and pulling units. The company currently employs over 5000 employees between the head offices in Cairo, Saudi Arabia and in field employees.

During the initial stage of trade negotiations, the client exerted repeated pressure on our company, stating that it had obtained a quotation from another trader which was 10% lower than our total price, and continuously demanded a price reduction from us.

Despite multiple rounds of telephone conferences held between both parties for communication, we received a notice from the client shortly after submitting BAFO offer: It is pity to inform that you lose the order because Warom’s BAFO offer exceeded their expectation by 2%.

Upon receiving the notification email, our company immediately contacted the client and convened an urgent internal meeting to discuss countermeasures. Through proactive follow-up communications, we ultimately succeeded in turning the tide, securing the order, and completing the delivery as scheduled in accordance with the contract terms.

• Our Solution

Proactive Material Preparation: Standard products were put into production first, followed by the phased production of non-standard distribution boxes.

Given the large quantity of lighting fixtures, customized shipping mark must be affixed to each carton. This is to facilitate client identification and distribution to the corresponding drilling platforms.

High-quality products were successfully delivered within the effective timeframe.

• Implementation Process & Timeline

1.  May 27, 2024: EDC sent an inquiry for 230 sets of lighting fixtures.

2.  June 6, 2024: EDC notified our company that the inquiry quantity would be doubled to over 570 sets of lamps, and requested us to offer the most favorable discount.

3.  June 13, 2024: EDC put forward a demand for a 7% price reduction.

4.  July 1, 2024: Warom was informed that, subject to the management’s resolution, the procurement plan under this inquiry would be suspended, and we would be notified separately when the plan was restarted.

5.  July 4, 2024, Warom launched trade negotiations with the client; on July 21,PO awarded to Warom and formally accepted by us.

6.  July21, 2024, Material preparation and production of standard products were initiated; 3.  on July 29, the production of non-standard distribution boxes kicked off.

7.  September 25, 2024: All products passed inspection and completed packaging, entering the ready-for-shipment status.

• Achievements and Data Demonstration

This project spanned a total of 4 months from business negotiations to final delivery, efficiently achieving a closed-loop process covering commercial negotiations, order acquisition and product delivery. During the initial trade negotiation phase, the client repeatedly exerted pressure on our company, claiming that it had obtained a quotation from another trader which was 10% lower than our total price, and continuously demanded a price reduction from us.

Despite multiple rounds of telephone conferences held between both parties for in-depth communication, we still received a notice from the client shortly after submitting our final quotation: our offer exceeded their expectation by 2%, and thus the contract would not be awarded to our company. Upon receiving the notification email, our company immediately got in touch with the client and convened an urgent internal meeting to discuss targeted countermeasures. Through proactive follow-up communications and optimized solutions, we ultimately succeeded in turning the tide, secured the order smoothly, coordinated the entire process of production and quality inspection in a well-organized manner, strictly controlled product quality, fulfilled the delivery of all products as scheduled, and achieved efficient performance of the project.

• Customer Feedback

The client expressed recognition and praise for Warom’s delivery speed as well as the on-site performance of the linear emergency lighting fixtures, and affirmed that Warom-branded lighting fixtures feature superior quality and a longer service life based on the performance over past 2 years.

• Experiences Summary & Insights

1.  Order acquisition stems from consistent follow-up and relationship maintenance, as well as the credibility of the company brand in the eyes of clients.

2.  The successful delivery of an order should not end with shipment; instead, it requires continuous communication with clients regarding the performance of products after arrival at the site and installation, so as to maintain mutual trust.

3.  Attention to detail plays a crucial role in successful delivery. This involves arranging product material preparation in advance, coordinating with various departments, tracking production progress in real time, and clarifying production requirements explicitly.

4.  Win-win cooperation is the prerequisite for long-term collaboration. Proactively adjusting to clients’ changing needs and resolving potential risks arising from such changes with professional capabilities can not only earn clients’ trust, but also lay a solid foundation for further cooperation in the future.