Sinopec Plans to Acquire an Interest in SIBUR’s Krasnoyarsk Based Plant

Beijing (China), 31 October 2012. SIBUR, a Russian gas processing and petrochemicals company, and Sinopec International (Hong Kong) Co. Ltd, the wholly owned subsidiary of China Petroleum & Chemical Corporation (Sinopec), signed an agreement that will see Sinopec potentially purchase 25% + 1 share of Krasnoyarsk Synthetic Rubbers Plant JSC (KSRP). The agreement was signed in presence of SIBUR’s CEO Dmitry Konov and President of China Petrochemical Corporation and China Petroleum & Chemical Corporation Wang Tianpu. The deal is to be approved by Russian and Chinese regulators.

Earlier the parties signed an agreement on cooperation to create a joint venture, which will produce nitrile rubbers (NBR) on the base of KSRP. Once the joint venture is established, the shareholders will also consider the possibility of increasing the plant’s annual NBR capacity from 42.5 to 56 thousand tonnes.

SIBUR and Sinopec are also discussing projects on setting up a joint venture to produce nitrile and polyisoprene rubbers in Shanghai. Future operations’ annual capacity for each type of rubber is currently estimated at the level of 50 thousand tonnes, to be determined more precisely once the feasibility study is completed.

SIBUR (www.sibur.com) is the largest integrated gas processing and petrochemicals company in Russia and CIS as well as Central and Eastern Europe as measured by revenues. We purchase associated petroleum gas and liquid hydrocarbon feedstock from major Russian oil and gas companies and process them into energy products, including liquefied petroleum gases, natural gas and naphtha and further into various petrochemical products, including basic polymers, synthetic rubbers, plastics, products of organic synthesis, intermediates and other chemicals. We sell to around 1,500 customers in the energy, automotive, construction, retail and other industries in 60 countries. As of 30 June 2012, SIBUR owned and operated 27 production sites across Russia and employed approximately 31,800 people.

Since September 2011, Leonid Mikhelson, СЕО and founder of NOVATEK, has been the ultimate controlling shareholder of the Group. 100% of the share capital of OAO SIBUR Holding is owned by Sibur Limited.

Sinopec Corp. (www.sinopec.com) is one of the largest scale integrated energy and chemical companies with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining and ethylene capacity ranks No.2 and No.4 globally. The Company has 30,000 sales and distribution networks of oil products and chemical products, its service stations are now ranked third largest in the world. Sinopec listed in Hong Kong, New York, London and Shanghai (CH:600028;HKEX:386;NYSE: SNP;LSE: SNP) in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012

Sinopec International (Hong Kong) Co., Ltd was established on September 20, 2007 in Hong Kong. As the wholly owned Subsidiary of Sinopec, Sinopec International (Hong Kong) Co., Ltd mainly imports and exports synthetic resin, synthetic rubber, synthetic fiber feedstock and polymers, synthetic fiber products and organic chemical feedstock. Its target markets include South Korea, Japan, Singapore, Malaysia, Vietnam, Mideast and Taiwan. There are overseas representative offices in Vietnam,Taiwan and Singapore.