Successfully Won the Bid of Gas Concession Right in Luyang Lake Development Zone, Weinan City, Shaanxi Province
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (Stock Code: 603) SUCCESSFULLY WON THE BID OF GAS CONCESSION RIGHT IN LUYANG LAKE DEVELOPMENT ZONE, WEINAN CITY, SHAANXI PROVINCE The board (the “Board”) of directors (the “Directors”) of China Oil And Gas Group Limited (the “Company”, together with its subsidiaries, the “Group”) is pleased to announce that on 17 October 2018, 中油中泰燃氣投資集團有限公司(China City Natural Gas Investment Group Co., Ltd.*), a subsidiary of the Group, has successfully won the bid of the Project of Pipeline Gas Franchise of Luyang Lake Modern Industrial Development Zone in Weinan City, Shaanxi Province, China (“Luyang Lake Modern Industrial Development Zone”). Accordingly, pipe gas concession rights will be granted and a pipeline gas franchise agreement will be entered in the near future. GENERAL The Group is principally engaged in natural gas investment and energy related business, and has invested and set up 123 gas projects in 16 different provinces and autonomous regions in China and holds 76 city-gas exclusive concession rights. The Luyang Lake Modern Industrial Development Zone is a provincial-level development zone approved by the Shaanxi Provincial People’s Government with planned area of 332 square kilometers leading by ecological and aviation development, involving 7 towns and 81 administrative villages, spanning Pucheng and Fuping counties. It is one of the five major groups in the central city of Weinan; the development zone is 78 kilometers from the provincial capital Xi'an, 35 kilometers from the central city of Weinan, and 92 kilometers from the Xianyang International Airport. It is an important part of the “One City, Three Districts and Three Corridors” of Weinan City. At present, the Group has not had any projects in Shaanxi Province. The successful bidding of the gas project in the Luyang Lake Development Zone in Weinan City, Shaanxi Province is a major breakthrough in the expansion of the national gas market, further develops the Shaanxi gas market and lays a solid foundation in the integrated energy market. - 1 - Meanwhile, the Group will further develop its domestic gas market, increase its market share of domestic gas business, so as to enhance the Group’s position in the domestic market. The Board considers that entering into the Cooperation Agreement is a major step forward to the gas business in China. By Order of the Board China Oil And Gas Group Limited Chan Yuen Ying, Stella Company Secretary Hong Kong, 22 October 2018 As at the date of this announcement, the Board comprises three executive Directors, namely Mr. Xu Tieliang (Chairman and Chief Executive Officer), Ms. Guan Yijun and Mr. Liu Chunsun; and three independent non-executive Directors, namely Mr. Li Yunlong, Mr. Wang Guangtian and Mr. Yang Jie. * for identification purposes only - 2 - .