Kunlun Energy : PROPOSED CHANGE IN AUDITOR

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KUNLUN ENERGY COMPANY LIMITED

(incorporated in Bermuda with limited liability)

׺Կঐ๕Ϟࠢʮ̡

(Stock Code: 00135.HK)

PROPOSED CHANGE IN AUDITOR

The board of directors (the "Board") of Kunlun Energy Company Limited (the "Company"), with the recommendation of the audit committee of the Company (the "Audit Committee"), has resolved to appoint PricewaterhouseCoopers as the auditor of the Company for 2021, which is subject to the approval of the shareholders (the "Shareholders") at the upcoming annual general meeting of the Company (the "AGM").

According to the relevant regulations issued by the Ministry of Finance of the People's Republic of China and the State-owned Assets Supervision and Administration Commission of the State Council (the "SASAC"), there are restrictions in respect of the number of years of audit services that an accounting firm can continuously provide to a state-owned enterprise and its subsidiaries. KPMG will retire as the international auditor of PetroChina Company Limited ("PetroChina"), the controlling shareholder of the Company and a subsidiary of China National Petroleum Corporation (a state-owned enterprise under the control of SASAC) with effect from the close of the forthcoming annual general meeting of PetroChina and will not offer themselves for re-appointment due to the relevant requirement. The board of directors of PetroChina resolved to appoint PricewaterhouseCoopers as its international auditor for the year 2021.

As the Company is the subsidiary of PetroChina and PricewaterhouseCoopers is proposed to be appointed as the international auditor for PetroChina for the year 2021, the Board considers that it would be more efficient and cost effective for PricewaterhouseCoopers to be appointed as the auditor of the Company. Accordingly, the Board, with the recommendation of Audit Committee, has resolved to appoint PricewaterhouseCoopers as the auditor of the Company for the year 2021 (the "Proposal") in place of KPMG, which is subject to the approval by the Shareholders at the AGM.

KPMG has confirmed that there were no matters or circumstances that need to be brought to the attention of the Board, the Audit Committee, and the holders of securities of the Company in relation to its retirement. The Board also confirmed that there were no relevant matters regarding the retirement of KPMG and the Proposal that should bebrought to the attention of the Shareholders. The Board and the Audit Committee have confirmed that there were no disagreements or unresolved matters between the Company and KPMG regarding the retirement of KPMG and the Proposal.

A circular containing, among other things, further details of the Proposal, together with a notice of the AGM will be despatched to the Shareholders as soon as practicable.

The Board would like to express its appreciation for the services of KPMG provided to the Company in the past years.

By order of the Board

Kunlun Energy Company Limited

Xie Mao

Company Secretary

Hong Kong, 25 March 2021

As at the date of this announcement, the Board comprises Mr. Fu Bin as the chairman and executive Director, Mr. Qian Zhijia as chief executive officer and the executive Director, Mr. Zhou Yuanhong as executive Director, Mr. Miao Yong as chief financial officer and executive Director, and Dr. Liu Xiao Feng, Mr. Sun Patrick and Mr. Tsang Yok Sing Jasper as independent non-executive Directors.