On 20 October 2026, CHK Oil Limited (CHK Oil) executed a framework agreement to purchase 100% of Zhejiang Dumei Electric Technology Co., Ltd. (the Target Company), a mainland China producer of intelligent oil-and-gas extraction equipment. The proposed acquisition involves two vendors—Hangzhou Dumei Holdings Co., Ltd. (70% equity) and Hangzhou Dumei Enterprise Management Consulting Partnership (30% equity)—and will be completed through Liaoning Port Oil Technology Co., Ltd., an indirectly wholly owned subsidiary of CHK Oil.
Key terms of the framework agreement include:
• Indicative consideration: The parties have signalled an intended transaction value of approximately RMB15.00 million. The final price and payment schedule will be fixed in a formal share transfer agreement to be signed on or before 30 November 2026.
• Deposit: CHK Oil will remit a RMB2.25 million deposit, which will be offset against the final consideration upon signing the formal agreement. Failure to pay this amount will automatically terminate the framework agreement.
• Exclusivity: During the agreement’s term, the vendors are prohibited from negotiating or entering into any equity transfer of the Target Company with third parties.
• Due diligence: Following the deposit payment, CHK Oil is entitled to continue comprehensive business, legal and financial due diligence on the Target Company.
• Working capital: Effective 1 November 2026, CHK Oil assumes responsibility for arranging and allocating working capital for the Target Company’s operations and project development. CHK Oil may appoint personnel to oversee finance, cash flow, inventory and receivables management.
Strategic rationale:
CHK Oil—which currently focuses on oil and natural-gas exploration, development, and commodity trading—aims to diversify and bolster profitability through targeted acquisitions. The Target Company’s expertise in R&D, production and sales of intelligent extraction equipment is expected to enhance CHK Oil’s operational efficiency, lower production costs and broaden revenue streams. Upon completion, Zhejiang Dumei Electric Technology will become a wholly owned subsidiary, supporting CHK Oil’s long-term expansion strategy.