Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Stock Code: 603)

ANNOUNCEMENT

This announcement is made by the Company pursuant to Rule 13.09(2) of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO.
The Board is pleased to announce that CCNG entered into the Exclusive Concession Right Agreement with Yangxin People's Government, pursuant to which Yangxin People's Government has agreed to grant to CCNG an exclusive concession right for operation of gas business in the geographical areas for a term of 30 years.
Through the use of the exclusive concession right, the Group will further develop its domestic natural gas and gas markets, strengthen and expand its market share of domestic natural gas and gas businesses.
This announcement is made by China Oil And Gas Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").

GAS PROJECT EXCLUSIVE CONCESSION RIGHT AGREEMENT

The board (the "Board") of directors (the "Directors") of the Company, is pleased to announce that the Group through its subsidiary, 中油中泰燃氣投資集團有限公司 (China City Natural Gas Co.
Limited*) ("CCNG"), entered into the Yangxin Gas Project Exclusive Concession Right Agreement
(the "Exclusive Concession Right Agreement") with 中國 湖 北 省 陽 新 縣 人 民 政 府 (The
People's Government of Yangxin County, Hubei Province, China*) ("Yangxin People's Government"), pursuant to which Yangxin People's Government has agreed to grant to CCNG an exclusive concession right for operation of gas business in the geographical areas (except for Baisha Town, Futu Town, Xingguo Town, being all other administrative regions of Yangxin County (including existing and future planned development zones, industrial parks, etc.)) for a term of 30 years.

- 1 -

Pursuant to the Exclusive Concession Right Agreement, CCNG can operate the business of natural gas pipeline construction, modified vehicle, modified ship, sales and wholesale of natural gas; construction and operation of liquefied natural gas (LNG), compressed natural gas (CNG) and liquefied-compressed natural gas (L-CNG) filling stations; construction and operation of city gas pipeline network and supporting facilities (including pipelines supply of natural gas, compressed natural gas (CNG), liquefied natural gas (LNG), factitious coal gas and other gaseous fuels, the services of maintenance, operation, repair and rescue of related piped gas facilities, etc.); supply of gas transmission equipment and materials.

GENERAL

The Group is principally engaged in natural gas investment and energy related business, and has invested and set up 102 gas projects in 13 different provinces and one autonomous region in China and holds 60 city-gas exclusive concession rights.
Yangxin County has concentrated residential areas, and has industrial parks, logistics parks, development zones, farm management zones, and thus has broad natural gas and gas utilization market.
By entering into the Exclusive Concession Right Agreement, the operation of piped gas exclusive operating activities in Yangxin County can be further standarised, it can also strengthen market supervision and protect the public interest and public safety.
Furthermore, through the use of the exclusive concession right, the Group will further develop its domestic natural gas and gas markets, strengthen and expand its market share of natural gas and gas businesses, so as to enhance the Group's position in the domestic market. The Board considers that the entering into the Exclusive Concession Right Agreement is a major step forward to the natural gas and gas markets in China.
By Order of the Board

China Oil And Gas Group Limited Chan Yuen Ying, Stella Company Secretary

Hong Kong, 14 April 2014

As at the date of this announcement, the Board comprises four executive Directors, namely Mr. Xu Tie-liang (Chairman and Chief Executive Officer), Mr. Zhu Yuan, Ms. Guan Yijun and Mr. Cheung Shing; and three independent non-executive Directors, namely Mr. Li Yunlong, Mr. Shi Xun-zhi and Mr. Wang Guangtian.

* for identification purposes only

- 2 -

distributed by