NewOcean Energy Holdings Limited ("NewOcean Energy" or the "Group;" stock code: 00342), one of the fastest-growing energy suppliers in the Southern China region, today announced that it has signed a strategic cooperative agreement with China Petroleum & Chemical Corporation ("Sinopec"; stock code: 00386), with Mr Shum Siu Hung, Chairman of the Group and Mr Xia Yu Fei, General Manager of Sinopec Guangdong Oil Branch Company as witnesses, to form a joint venture company "Sinopec NewOcean Energy Company Limited" (the "JV"). The JV is to expand the collective liquefied petroleum gas ("LPG"), liquefied natural gas ("LNG") and oil products businesses in Guangdong Province, promoting the Group's energy business to generate substantial growth. The registered capital of the JV is RMB100 million, with the Group to contribute cash capital of RMB49 million for an interest of 49%.

Through the collaboration, the Group will be able to integrate a sales network comprising its own auto-gas refueling stations and the petrol or gas refueling stations of Sinopec in Guangzhou. This will help extend the Group's LPG business presence in Guangdong Province and further consolidate its market leadership position, as well as lay a strong foundation for the development of its oil products business. Highlights of the cooperative agreement between NewOcean Energy and Sinopec are outlined below.

-- The JV will undertake the operations of two auto-gas refueling stations from NewOcean Energy and Sinopec and add gas refueling facilities at 27 Sinopec petrol stations in Guangzhou,

-- The JV may establish LPG bottling (petrol) stations at suitable sites,

-- Sinopec will help the JV to apply to operate a bonded oil business in China.

Mr Lawrence Shum, Managing Director of NewOcean Energy, said, "The strategic long-term cooperation with Sinopec not only significantly enlarges our LPG sales volume and coverage in Guangdong Province, but also enables us to obtain a coveted bonded oil business license in China within a short period, accelerating development of our oil products business. These advantages should enable the Group to realise rapid growth of its energy business, continuously increase our market share in the Province and expedite the achievement of our strategic goal of selling five million tonnes of integrated energy products."

Mr Li Ji Cong, Deputy General Manager of Sinopec Guangdong Oil Branch Company, said, "NewOcean Energy's auto-gas refueling stations offer advantageous locations in bustling Guangzhou. The company is an established leader there with a strong reputation within the industry. Thus, we are happy to establish this JV to jointly develop the fast-growing energy market in Guangdong Province, thereby increasing the market share of clean energy and creating a win-win situation for both companies."

About NewOcean Energy Holdings Limited

NewOcean Energy Holdings Limited is the largest LPG operator in the Southern China region. The Group wholly owns and operates a Class 1 LPG sea terminal in Zhuhai, China for VLGCs (Very Large Gas Carriers) through which it conducts its international import and re-export and domestic wholesale businesses. It also actively expanded its retail sales in China with a network of 16 bottling plants in 11 cities in Guangdong and Guangxi, complemented by a further network of 17 auto-gas refueling stations in Guangzhou. Its retail network has been extended to cover Macau and, in the near future, Hong Kong. Moreover, the Group has expanded its business into fuel oil supply in May 2012 with the commencement of operation of three bunker ships and a light diesel fuel supply station at Yaumatei in Hong Kong.