CHINA OIL HBP SCIENCE & TECHNOLOGY CORPORATION LTD. ANNOUNCEMENT OF WINNING THE BID FOR MAJOR BUSINESS CONTRACT

I, Overview of Winning Bid
China Oil HBP Science & Technology Corporation Ltd. (Hereinafter referred to as "company") received the Letter of Award from Petro China International Iraq FZE Iraq Branch on November 19th, 2017 and confirmed that the company is the winning bidder of Iraq Halfaya Oilfield Off-site Facilities Procurement Project. The total contract amount of the project is USD28,093,700 (approximately RMB186,000,000).

II, Introduction of Both Parties
Petro China International Iraq FZE Iraq Branch is a joint venture invested by Petro China Iraq Branch, Total E&P Iraq, PETRONAS and Iraq South Oil. Petro China Iraq Branch is in charge of carrying out production development services contract.

The company does not have any relationship with the counter party.

III, Main Contents of Letter of Award
1, Project Background: Halfaya Oilfield is located in the Southeast of Iraq, discovered in 1976. With a length of 30km and 10km width, it covers an area of 288 square kilometers. China National Petroleum Corporation made an announcement on Jan 27th, 2010, that Petro China is taking the lead to establish a joint venture with oil companies including Total E&P Iraq, PETRONAS and Iraq South Oil and sign Halfaya Oilfield Development Production Service Contract which will be effective in the next 20 years.

Halfaya Oilfield First Phase Construction was built in June, 2012, capacity was raised from thousands BPD to 100,000BPD; the main work of the Second Phase Construction was completed, capacity is 200,000BPD. Now the Third Phase Construction is at preparatory stage, Halfaya Oilfield’s annual capacity will be 20,000,000T after the Third Phase Construction. It created a good and positive influence to make Middle East a cooperation role model under the “Belt and Road Initiative”.

2, Project Name: Iraq Halfaya Oilfield Off-site Facilities Procurement Project
3, Winning Bid Amount: USD28,093,700 (approximately RMB186,000,000)
4, Bid Winner: China Oil HBP Science & Technology Corporation Ltd.
5, Project Location: Halfaya Oilfield, Iraq
6, Estimated Execution Period: 4 Years.