Sinochem Yemen Holding Co., Ltd. was registered on June 19th, 2008 in Cayman, owning 16.79% interests in Yemen Block 10. The Block is located in Hadramaut, Yemen, covering an area of 931 km2 and consisting of three already-put-intoproduction
oil fields – Kharir, Atuf and Wati/Jathma, and three other exploration potential regions.

Yemen Block 10 was put into production in 1997 with reservoir dominated by sandstone. Through exploration in old district in 2003, granite basement oil reservoir was found and put into development in 2007, with the highest yield of one single well coming to 6,000 barrels a day and the total basement output exceeding 50,000 barrels a day. After the purchase, by means of accelerating the development and expansion, the daily yield of Yemen Block 10 has increased from 43,000 barrels to 70,000 barrels.

The experience in successfully developing the basement oil reservoir in Yemen Block 10 can be referenced when developing other granite basement oil reservoirs throughout the world, providing a new approach to find new reservoirs in old oilfields in the future.