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Recon reaches agreement for PetroChina refinery

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Hydrocarbon Engineering,

Recon Technology, Ltd. (Recon or the company), a leading independent oilfield services provider operating primarily in China, has announced the company's affiliate, Beijing BHD Petroleum Technology Co., Ltd. (BHD) has signed and completed an agreement (agreement) with Beijing OriginWater Purification Engineering Technology Co., Ltd (BOW Engineering), a subsidiary of Beijing OriginWater Technology Co. Ltd. (300070.SZ) (BOW) to cooperate with BOW Engineering to install and provide maintenance and chemical testing services for an all-in-one wastewater treatment equipment package to Golmud Petroleum Refinery, an affiliate of Qinghai Oilfield, a PetroChina Co., Ltd. (PetroChina) subsidiary.

Pursuant to the agreement, Recon will partner with BOW Engineering to provide a complete set of wastewater treatment equipment and service to an upgrade renovation project for Golmud Petroleum Refinery, which is expected to be completed by the end of May 2017, with the agreement valued at RMB 6.37 million (approximately US$0.94 million).

China's new Environment Protection Law and the Emission Standard of Pollutants for the Petroleum Refining Industry (Emission Standard) enacted by the Ministry of Environmental Protection of PRC (MOEP) require all petroleum industry companies in China to meet higher standards for industry wastewater by 1 July 2017. As China has increasingly enforced compliance with these requirements, oil and chemical companies have been upgrading their old equipment and treatment technology with renovations such as those being undertaken at the Golmud Petroleum Refinery.

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