Pursuant to the Dredging and Reclamation Contract, China Communications Construction agreed to carry out dredging and reclamation works on the Land. The total consideration payable pursuant to the Dredging and Reclamation Contract is RMB180 million (approximately HK$205.2 million).

Last year June Brightoil announced its plans to build crude and oil products storage facilities with a combined capacity of 8 Mm3, with attached wharfs and other necessary infrastructure.

Brightoil owns 100% stake in the oil storage facilities, and 60% in the terminal project joint-ventured with Changxing Island Investment Company (a company invested by the Industrial Zone Management Committee of Dalian).

Feasibility study on expanding storage capacity to 12 Mm3 is being conducted. Brightoil Dalian Terminal will construct and operate 13 – 15 berths to accommodate various sizes of vessels. Phase 1 – total capacity of 4 million m3, construction will start in 2010 and expect to be completed in 18 – 24 months. Phase 2 – total capacity of 4 million m3, construction will start upon completion of Phase 1.