CNPC International (Kura) Ltd. entered into a sale and purchase agreement to acquire Fortunemate Assets Limited from Kunlun Energy Company Limited (SEHK:135) for $11.2 million on December 29, 2017. Under the terms of the agreement, upon completion, Kunlun Energy Company Limited will assign the debt owed by Fortunemate Assets Limited and CNPC International (Kura) Ltd. will assume the debt. CNPC International (Kura) Ltd. shall be entitled to set off the amount equal to the debt against the consideration when making payment to the Kunlun Energy Company Limited. Upon completion, the net cash flow (on accrual basis) of Fortunemate Assets Limited for the period starting from January 1, 2017 and ended on the completion date will be attributable to CNPC International (Kura) Ltd. and will be settled when the consideration will be paid. Upon the completion of the transaction, Kunlun Energy Company Limited will not hold any shareholding in Fortunemate Assets Limited. For the year ended December 31, 2016, Fortunemate Assets Limited reported total revenue of $20.49 million and profit after tax of $5.94 million. As of December 31, 2016, Fortunemate Assets Limited reported total assets of $12.8 million and net assets of $11.2 million. The transaction is subject to agreement being notified to State Oil Company of the Azerbaijan Republic, approval of Board of Directors of Kunlun Energy Company Limited, Fortunemate Assets Limited and CNPC International (Kura) Ltd. and other conditions. The transaction is exempt from the independent shareholders’ approval. The transaction has been approved by the Board of Directors of Kunlun Energy Company Limited. The transaction is expected to close on March 31, 2018. The proceeds from the transaction will be used to expand the comprehensive natural gas terminal application business by Kunlun Energy Company Limited.