New XCL (China) Co., Ltd. (hereafter referred as New XCL), was registered in Delaware, U.S. in 2003. The only asset of the company was 24.5% of the rights and interests of Zhaodong offshore oilfield in China oilfield. In February 2007, Sinochem Corporation officially purchased 100% of the shares of New XCL Company.

Zhaodong offshore oilfield is located in the area of beach and shallow sea within the plumb line of 5 meters, which is at the east of Zhaojiabao Village, Huanghua City of Hebei Province, covering an area of 197 km2. The region includes 3 oilfields, among them, C and D block are currently under production, and C4 block is to be developed according to the plan.

At present, Zhaodong offshore oilfield is at the stage of gradually growth and the output of oil has been increasing steadily, reaching 20,000 barrels per day. The company is carrying out the researches on new oil well positions and new development plans, in order to promote the construction and development of the oilfield and increase the output.