Delixy Enters into Non-Binding Letter of Intent for Sarybulak Oil Field Stake

Delixy Holdings Limited has entered into a non-binding letter of intent to acquire up to 48% interest in the Sarybulak Oil Field in East Kazakhstan. The proposed transaction involves two potential schemes: an acquisition of part or all of the equity of the Project operating company, or an asset merger and restructuring involving operational assets, pipeline facilities, mineral right reserves, and production and operation business.

The Sarybulak Oil Field is a gas and crude oil upstream exploitation and production company located near the China-Kazakhstan border. It has maintained a stable supply of natural gas to China for over 13 years through a self-owned cross-border pipeline. The field has recently expanded into crude oil production, with commercial sales commencing in the first quarter of 2026.

Mr. Dongjian Xie, Executive Chairman and Chief Executive Officer of Delixy, commented on the proposed transaction: 'The Project combines strong relationships with local government, long-established natural gas production, existing cross-border energy infrastructure, newly commenced crude oil production, and substantial resource potential within a strategically important region adjacent to the Chinese market.'

Completion of the transaction is subject to due diligence, negotiation of a definitive agreement, satisfaction of conditions negotiated therein, and approval by Delixy's board. A definitive agreement will also be subject to receipt of required Kazakhstan governmental, regulatory, and subsoil-authority approvals.