Sinopec Group Completed the Acquisition of Addax

BEIJING, Aug. 18 /PRNewswire-Asia/ — China Petrochemical Corporation
(“Sinopec Group”) is pleased to announce that the acquisition of Addax
Petroleum Corporation (“Addax”) was successfully completed after nearly six
months of due diligence and negotiation.

Sinopec Group signed the acquisition agreement at an offer price of CAD
52.8 per share on the 24th of June 2009. It was approved by the Chinese
regulatory authorities on the 6th of August. All pre-requisite conditions have
been satisfied, hence Sinopec Group announced the successful closing of this
transaction today.

Addax Petroleum Corporation is an independent oil producer, established in
1994 and headquartered in Switzerland. It was listed on both Toronto and
London stock exchanges with common share totaling 157.6 million and now has
more than 860 employees. The company recorded USD 3.762 billion in revenue for
the year 2008, with a net profit of USD 784 million and an operating cash flow
of USD 1.521 billion.

Addax Petroleum’s assets are primarily located in Nigeria, Gabon and the
Kurdistan Region of Iraq and have a good combination of both oil and gas
reserves. It has a total of 25 licensed blocks, of which 15 are under
exploration and 10 are under development. Of the total blocks, 17 are offshore
and 8 onshore. Addax has 537 million barrels of 2P (Proved + Probable) equity
crude reserves, and 738 million barrels of 3P (Proved + Probable + Possible)
equity crude reserves. In addition, Addax has 111 promising traps which await
drilling.

At the time of Addax’s Q2 earnings the company produced an average of
143,000 barrels of crude per day (approximately 7 million tons per year), of
which 72.2% comes from Nigeria, 19.5% from Gabon and 8.3% from Kurdistan.
Based on an initial development plan, its near-term production volume is
expected to reach 10 million tons/year.

The closing of this deal represents the largest successful acquisition of
overseas oil and gas assets by a Chinese company. According to industry
experts, “Addax’s assets are well-structured and of good quality, contain
sizeable proven reserves and have strong production volumes with great growth
potential.” Through the acquisition of Addax, Sinopec would be able to improve
its resources base; further optimize its overseas oil and gas assets structure;
expedite its overseas oil and gas exploration and development, and enhance
China’s safe and stable crude supply.

    For more information, please contact:

     Brunswick Group
     Hong Kong Office
      Ms. Tong Zhao
      Tel:   +852-3512-5000
      Fax:   +852-2259-9008
      Email: sinopec@brunswickgroup.com

     Beijing Office
      Ms. Xiaolu Zhao
      Tel:   +86-10-6566-2256
      Fax:   +86-10-6566-3856

SOURCE China Petrochemical Corporation