implementation of China's armed police guard in Iraq

March 11, the Iraqi province of al-generation Vahit oil cloth, two armed police on guard at
the groundbreaking ceremony. The same day, China's oil in Iraq ach the first cooperation
project formally began on behalf of oil cloth, which is since 2003, after the war in Iraq,
stationed in Iraq, the first foreign oil companies.

Ach oil field project on behalf of cloth for a total investment of three billion U.S.
dollars, the contract period of 23 years, Chris built a three-year plan to 25,000 barrels
per day production capacity, after six years, production will increase to 11.5 million
barrels per day. The project mainly for the production of crude oil exports, as well as
near the power station to provide fuel to ease the power shortage situation in Iraq.
Xinhua Baghdad, March 11 Mar Oasis Oil Company of China and the Iraqi North Oil Company of
cooperation on behalf of Iraq's Wasit province aihaoil cloth on the 11th started the
project.

aiha behalf of the oil cloth was found in 1979, is located in south-central Iraq, away from
the capital, Baghdad, about 160 kilometers, about 10 million barrels of oil reserves.aiha
behalf of the fabric of post-war Iraq oil field project is the first foreign oil
cooperation projects, China invested about three billion U.S. dollars, the contract period
of 23 years, and may be extended based on the actual situation. 3 years, oil output is
expected to reach 25,000 barrels per day, 6 years, Nissan will form a production capacity
of 115,000 barrels per day.

Oasis Chinese state-owned oil company and Iraq's North Oil Company in Baghdad in November
last year, signed on behalf of cloth aiha service contracts with oil field development.
Oasis in the oil and oil is the China North Industries Corporation under the joint venture.
Iraqi Oil Minister Hussein Shahristani, the Chinese ambassador to Iraq, Chang Yi also
attended the ceremony.