Kunlun Energy : Announcements and Notices - Change of Executive Directors and the Chairman and Change of Composition of the Nomination Committee

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(Stock Code: 00135.HK)

CHANGE OF EXECUTIVE DIRECTORS AND THE CHAIRMAN

AND

CHANGE OF COMPOSITION OF THE NOMINATION COMMITTEE

RESIGNATION OF EXECUTIVE DIRECTORS AND THE CHAIRMAN

The board (the "Board") of directors (the "Directors") of Kunlun Energy Company Limited (the "Company", together with its subsidiaries, the "Group") hereby announces that, with effect from 12 January 2018, (i) Mr. Huang Weihe ("Mr. Huang") has resigned as executive Director and as the chairman of the Board (the "Chairman"); (ii) Mr. Wu Enlai ("Mr. Wu") has resigned as executive Director; (iii) Mr. Ding Shilu ("Mr. Ding") has resigned as executive Director; and (iv) Mr. Zhang Yaoming ("Mr. Zhang") has resigned as executive Director. Mr. Huang, Mr. Ding and Mr. Zhang have resigned due to them having reached their respective age of retirement. Mr. Wu has resigned as executive director due to work-related reasons.

Each of Mr. Huang, Mr. Wu, Mr. Ding and Mr. Zhang has confirmed that he has no disagreement with the Board and there are no circumstances related to their respective resignations which need to be brought to the attention of The Stock Exchange of Hong Kong Limited and the shareholders of the Company (the "Shareholders").

Mr. Huang, Mr. Wu, Mr. Ding and Mr. Zhang demonstrated dedication and diligence during their terms of office, and had active roles in facilitating the Group's standardized operations and sustainable development. The Board would like take this opportunity to express its sincere gratitude to Mr. Huang, Mr. Wu, Mr. Ding and Mr. Zhang for their outstanding contributions to the Group during their term of offices.

APPOINTMENT OF EXECUTIVE DIRECTORS AND THE CHAIRMAN

The Board is pleased to announce that, pursuant to a resolution of the directors passed at a meeting of the Board on 12 January 2018 and with effect from 12 January 2018, (i) Mr. Ling Xiao ("Mr. Ling") has been appointed as executive Director and the Chairman; and (ii) each of Mr. Zhou Yuanhong ("Mr. Zhou") and Mr. Miao Yong ("Mr. Miao") has been appointed as executive Director.

Biographical details of Mr. Ling, Mr. Zhou and Mr. Miao are set out as follows:

Mr. Ling Xiao, aged 54, is currently vice president of PetroChina Company Limited (中國石 油天然氣股份有限公司) (Stock Code: 00857.HK) ("PetroChina"), general manager of PetroChina Natural Gas Sales Branch Company (Natural Gas and Pipelines Branch Company) ("Natural Gas Sales Branch Company") and chairman of the board of directors of PetroChina Pipelines Company Limited (中石油管道有限責任公司 ) ("PetroChina Pipelines"). Mr. Ling is a professor-level senior engineer and has over 30 years of experience in the Chinese petroleum and chemical engineering industry. Mr. Ling obtained a bachelor's degree in petroleum transportation and storage from East China Petroleum Institute in July 1982. In June 2008, he obtained a doctorate degree in oil and gas storage and transportation from China University of Petroleum (Beijing).

From June 2001 to August 2004, Mr. Ling was deputy director of Xinjiang Petroleum Administration. From August 2004 to December 2007, he had successively been chairman of the board of directors and general manager of Western Pipeline Company Limited (西部管道 有限責任公司). From December 2007 to March 2009, he acted as executive director, general manager of Western Pipeline Limited Company (西部管道有限責任公司). From March 2009 to November 2013, Mr. Ling was general manager of the Western Pipeline Branch Company. From November 2013 to March 2016, he was general manager of PetroChina West-East Gas Pipeline Branch Company (中國石油西氣東輸管道分公司) and general manager of West-East Gas Sales Branch Company (西氣東輸銷售分公司). From March 2016 to September 2016, Mr. Ling was deputy general manager of PetroChina Natural Gas and Pipelines Branch Company and deputy general manager of Natural Gas Sales Branch Company. From September 2016 to November 2017, he was deputy general manager of Natural Gas Sales Branch Company and general manager of PetroChina Pipelines.

Mr. Zhou Yuanhong, aged 50, is currently deputy general manager of M&A Department of China National Petroleum Corporation ("CNPC") and PetroChina and director of investee companies of CNPC and PetroChina. Mr. Zhou was appointed to the aforementioned positions in October 2016. Mr. Zhou obtained a bachelor's degree in accounting from Xi'an Petroleum Institute in June 1991. In November 2003, he obtained a master's degree in international accounting from University of New South Wales in Australia. From May 2002 to August 2003, he was deputy head of finance division of PetroChina Natural Gas and Pipelines Branch Company. From August 2003 to April 2006, he was deputy head of equity management office under M&A Department of PetroChina. From April 2006 to July 2008, Mr. Zhou was head of equity management office under M&A Department of CNPC and PetroChina. From July 2008 to October 2016, he was a full-time director and full-time supervisor of M&A Department of CNPC and PetroChina. From October 2016, Mr. Zhou has been deputy manager of M&A Department of CNPC and PetroChina and director of investee companies thereof. Mr. Zhou is also a director of CNPC Capital Company Limited (Stock Code: 000617.SHE), a listed company on the Shenzhen Stock Exchange.

Mr. Miao Yong, aged 45, is currently chief accountant of Natural Gas Sales Branch Company. Mr. Miao was appointed to the aforementioned position in July 2017. Mr. Miao, being a senior accountant, obtained a bachelor's degree in finance and accounting from Xi'an Petroleum Institute in June 1996. In January 2011, he obtained a master's degree in business administration from Qinghua University. Mr. Miao has successively worked for China National Oil and Gas Exploration and Development Corporation (中國石油勘探開發公司) and PetroChina in their respective taxation and prices divisions under the finance departments. From July 2009 to June 2012, he was deputy chief accountant of Finance Department of PetroChina. From June 2012 to December 2016, he was chief accountant of PetroChina Southwest Pipelines Branch Company (中國石油西南管道分公司). From December 2016 to July 2017, he was Chief Accountant of PetroChina Pipelines.

Save as disclosed above, as at the date of this announcement, each of Mr. Ling, Mr. Zhou and Mr. Miao (i) does not hold any other position with the Company and other members of the Group; (ii) has not held any other directorship in other public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years or any other major appointment and professional qualification; and (iii) does not have any relationship with any Directors, senior management or substantial or controlling shareholders of the Company.

Each of Mr. Ling, Mr. Zhou and Mr. Miao will enter into a formal letter of appointment with the Company for a term of three years commencing from the day of the conclusion of the general meeting at which he was re-elected in accordance with the bye-laws of the Company. The emolument of each of Mr. Ling, Mr. Zhou and Mr. Miao will be determined by the Board with regard to his duties, responsibilities and time spent on the affairs of the Company by reference to the prevailing market conditions.

As at the date of this announcement, each of Mr. Ling, Mr. Zhou and Mr. Miao does not, and is not deemed to, have any interest or short position in any shares, underlying shares or debentures of the Company or any of its associated corporations within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Save as disclosed above, there is no other matter relating to the appointment of Mr. Ling, Mr. Zhou and Mr. Miao and that needs to be brought to the attention of the Shareholders, nor is there any other information which is required to be disclosed pursuant to requirements of Rule 13.51(2)(h) to (v) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

CHANGE OF COMPOSITION OF THE NOMINATION COMMITTEE

Following the change of directorship as disclosed above, with effect from 12 January 2018, Mr. Huang has ceased to be the chairman and a member of the Nomination Committee of the Company, and Mr. Ling has been appointed as the chairman and a member of the Nomination Committee of the Company.

By Order of the Board Kunlun Energy Company Limited

Cheng Cheng

Company Secretary

Hong Kong, 12 January 2018

As at the date of this announcement, the Board comprises Mr. Ling Xiao as the Chairman and Executive Director, Mr. Zhao Yongqi as the Chief Executive Officer and Executive Director, Mr. Zhao Zhongxun as Executive Director, Mr. Zhou Yuanhong as Executive Director, Mr. Miao Yong as Executive Director, and Mr. Li Kwok Sing Aubrey, Dr. Liu Xiao Feng and Mr. Sun Patrick as Independent Non-Executive Directors.