Notice of Tender for the Second Batch of Fracturing Construction Projects in 2016 in Hainan Fukuyama Oilfield

Project Name Second Fracturing Project in 2016 in Hainan Fukuyama Oilfield

Item Number-XNYQT-0003550

I. Tender conditions

The construction project of this project has fulfilled relevant approval and filing procedures as required. The funds have been implemented and the conditions for tendering have been met.

II. Overview and scope of tender

(1) Project Overview and Bidding Scope: Project Overview: The Fushan Depression, Fukuyama Oilfield, Hainan Province, has discovered three oil and gas fields, Huadian, Meitai and Bailian, and oil-bearing structures such as Jinfeng, Chaoyang and Yong'an, and four oil-bearing layers. After the development in recent years, the production of some oil wells has been rapidly declining, and the production of some low-permeability oil and gas wells is low. In order to further deepen reservoir evaluation, strengthen geological understanding of exploration wells, increase production capacity of oil and gas wells, and implement fracturing stimulation measures for some oil and gas wells. At present, the source of funds has been implemented to complete the project and 15 wells have been selected as the targets for fracturing. The fracturing design has been completed by the organization's design unit, and the fracturing chemical materials and downhole tools have been implemented. Now, a total of 30 layers of fissures for 15 wells have been disclosed. Tender. The scope of the tender: Focusing on oil and gas wells in the Fushan Oilfield, the project will focus on cracking and stimulation. (2) Construction site: Fushan Oilfield, Hainan (3) Duration: Within 40 days from the date of receipt of the notice from Party A (4). For specific details, please refer to the tender document with the tender number of XYSZBZX2016-GC-027.

Focusing on oil and gas wells in Fushan Oilfield, the company will focus on fracturing and increasing production. Bidding content: In this fracturing construction project, the bidder provides geological design, engineering design, chemical materials for fracturing, proppants, downhole tools, and liquid tanks. The bidder provided fracturing equipment and personnel, and conducted construction work according to the fracturing design of the bidder. The amount of work for this bidding was 30 fracturing and production increase in 15 wells such as Fu 101X Well.

III. Bidder qualification requirements

*3.1 This consortium does not accept consortium bids. *3.2 Bidder Qualification Requirements *3.2.1 The Bidder must have a valid business license, organization code certificate, tax registration certificate (bidders who implement the "three-in-one" reform, and do not need to provide the organization code certificate and tax registration separately. The certificate only needs to provide the business license for loading the uniform credit code.) The business scope includes the content of the project and has corresponding capabilities in terms of personnel, equipment, and funds. *3.2.2 The bidder must have a valid safety production license. *3.3 Other requirements of the bidder *3.3.1 Requirements of the construction team The bidder's proposed construction team shall have the qualification of a team qualified by China National Petroleum Corporation for carrying out fracturing operations in the Fushan Oilfield in Hainan. *3.3.2 Personnel requirements The bidder plans to send a fracking captain: he must have a technical title of intermediate level or above. The bidder intends to send a fracturing team must have a full-time safety management personnel. *3.3.3 Major equipment requirements for construction The bidder plans to invest in a fracturing truck model equal to or higher than the 2000 model, the construction equipment meets the pump pressure up to 90 MPa, the displacement reaches 10m3/min, and the fracturing sand (ceramite) single layer is reached. 100m3 construction scale. *3.3.4 Credit requirements*3.3.4.1 There are no illegal records in the production and business activities in the past three years, such as violations of law and regulations; the state, the tenderee, and their superior departments have not been expressly required to suspend or cancel the transaction qualifications; bad records include but are not limited to Administrative penalties, case investigation by the case handling agency for investigation, review and prosecution, and guilty conviction by the court for suspected crimes; *3.3.4.2 The bidder was not suspended, property was taken over, frozen, or bankrupted. *3.3.4.3 Bidders do not have other restrictions as prescribed by laws or administrative regulations. The clause with “*” in the bidding documents is the key clause. If it is not satisfied, the bid will be rejected.

IV. Acquisition of tender documents

Bidding Document Release Date: November 08, 2008, 09:00:00