Shenzhen Chiwan Petroleum Supply Base Co., Ltd
                                  深圳赤湾石油基地股份有限公司
                      ( Incorporated in the People's Republic of China )
                        Announcement of Dividend Distribution for 2003

    The Board of Directors of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. ("
the Company") is pleased to announce that the Company's dividend distribution 
proposal was approved at The Annual General Shareholders' Meeting for the year 
2003 of the Company held on Tuesday, 25 May, 2004.
    Details of the dividend distribution are as follows:
    I.	A final cash dividend of US$0.3157 for every 10 shares (the payment of 
which will be made in terms of Hong Kong Dollars for holders of B shares) will be 
paid by the Company based on the year-end figure of 230,600,000 shares. Holders 
of B share may not pay the tax transitorily;
    II.	Dividend will be payable to all holders of share in the Company as at 
the close of trading on the Shenzhen Stock Exchange on Thursday, 22 July , 2004;
    III.The ex-dividend date will be Friday, July 23, 2004 and the final dividend 
will be payable to holders of B share whose names appear on the register on 22 
July, 2004; 
    IV.	The cash dividend for B share will be put in the account directly of 
holders of B share from their relevant authorised stockbrokers or custodian banks 
on 27 July, 2004. The cash dividend for B shares will be paid in Hong Kong Dollars
and for this purpose conversion will take place at the closing rate between US$ 
and HK$ announced by the People's Bank of China on the first working day (26 May, 
2004) after the resolution was passed. (US$1:  HK$7.7966)
    V.	Holders of B shares who have changed authorized stockholders or custodian 
banks on 27 July 2004, shall still collect their dividend in cash from their 
previous authorized stockholders or custodian banks.
    Enquires: 	Finance and Administration Department of Shenzhen Chiwan Petroleum 
Supply Base Co., Ltd. 
    Tel	 :    (86 755) 26694211
    Fax	 :    (86 755) 26694227	
    By Order of the Board
                                                                     Fu Jialin
                                                                 CompanySecretary
                                                                Dated: 16 July 2004