Business Developments

1 Feb 2007 07:01

Fortune Oil PLC01 February 2007 1 FEBRUARY 2007 FORTUNE OIL PLC ("Fortune Oil" or "the Company") Business Developments Fortune Oil is pleased to announce the following business developments: Natural Gas Supply Sales of natural gas continue to grow strongly and there have been no supplyinterruptions during the winter. Throughput at the Tongzhou CNG station iscurrently averaging 260,000 cubic metres per day compared to 180,000 cubicmetres per day one year ago. Approval was recently obtained from the Ministry of Commerce to establish Fortune Gas Investment Company Limited, a 100%-owned holding company to be registered in China. This holding company will help implement the Company's strategy of creating an integrated gas business. Bluesky Aviation Refuelling Joint Venture The Bluesky business continues to perform well and the government-mandatedcompensation mechanism remains in force, as expected. The rebate paid bydomestic airlines to Bluesky in the fourth quarter 2006 was RMB 320 (US$41) pertonne. The first quarter 2007 rebate is lower at RMB 140 (US$18) per tonne,reflecting the decrease in international jet fuel prices which are now closer todomestic jet fuel prices. Rebates in respect of periods prior to the second quarter 2006 are still under investigation by the government. Oil Products Supply In December 2006 the West Zhuhai Oil Products Terminal was granted a licence tostore bonded-status products. Discussions are now in progress with thirdparties to use the terminal for supplying gasoil to destinations such as HongKong and Macau. The new licence will also enhance the Company's own tradingoperations in China, which currently include the import of bitumen and base oiland the export of chemicals, primarily on a low-risk agency basis. The Company will provide further information when the preliminary results areannounced for the year ended 31 December 2006 in April 2007. Enquiries: Fortune Oil PLCJohn Pexton - Deputy Chief Executive Tel: 00 852 2583 3113 (Hong Kong) Pelham Public RelationsArchie Berens Tel: 020 7743 6679 or 07802 442 486 This information is provided by RNS The company news service from the London Stock Exchange