The board of directors of China Oil and Gas Group Limited (the "Company", together with its subsidiaries, the "Group") announced that in March 2022, CNPC Gas Xining Co. Ltd. ("Xining Company"), a subsidiary of the Group, entered into a concession agreement (the "Concession Agreement") on urban piped gas with the management committee of Xining Comprehensive Bonded Zone ("XCBZ Management Committee"), pursuant to which XCBZ Management Committee agreed to grant Xining Company the concession for supply of gas for a term of 30 years. Pursuant to the Concession Agreement, Xining Company is licensed to sell natural gas within the current jurisdiction of the XCBZ Management Committee (the "Concession Area"), including the supply of natural gas and liquefied natural gas to users in the form of pipeline transportation, and the provision of services related to piped gas facilities, such as project construction, maintenance, operation and emergency rush repair.