Hanwei GRE Pipe Comparison to Steel Pipe Presentation for PEMEX September 5th, 2018 © Hanwei Energy Services Corp. 2018

Confidentiality This Memorandum has been prepared for discussion purposes for consideration of establishing a Hanwei GRE manufacturing plant in Veracruz, Mexico and the qualification of Hanwei products currently manufactured by the Company under API specifications in China. This Memorandum and any other written or oral communication made available to PEMEX has been provided for the purpose of introducing the Project and may not be reproduced or used for any other purpose without the express written consent of Hanwei. By accepting this Memorandum, the Recipient acknowledges and agrees that all of the information contained herein is confidential and proprietary. Page 2

Advantages of GRE Durable and Corrosion Resistant Internal and external surfaces resistant to a wide variety of chemicals, crude oil, residues, injection water and bacteria in aggressive and caustic environments. Lightweight A quarter to an eighth of the weight of comparable steel pipe; easy to install without the requirement of heavy equipment or machinery; no welding; no X ray; etc Cost-effective Smooth internal surfaces reduce friction and maintain flow volumes, thus allowing for downsizing of piping system or decreased pumping costs and optimal operating flows Low Life Cycle Cost GRE pipe has lower life cycle cost compared with steel pipe. Practically no maintenance required after installation and therefore no operational downtime. Hanwei Integrated GRE Piping Systems Complete range of GRE piping systems with different diameters, joint systems and pressure ratings to suit different applications, including different choices of joint systems. In all cases superior performance and cost to steel pipe. Page 3

HANWEI GRE PIPE vs STEEL PIPE Common Steel Pipe Epoxy matrix, which can meet the stringent requirement for delivery of highly corrosive media Severe corrosion after steel pipe put in service for some time under highly corrosive application Page 4

HANWEI GRE PIPE vs STEEL PIPE Common Steel Pipe Long service life 20-30 years (can go up to 50 years) Short service life 5-10 years (No Cathodic Protection or Corrosion Inhibitor) Page 5

HANWEI GRE PIPE vs STEEL PIPE Light Weight Low transportation and installation cost. Low thermal conductivity Good electrical and magnetic insulation properties Not affected by complex geographical, conductive or static electricity conditions Environmental protection Low energy consumption during field use and operating/production No significant maintenance costs Heavy weight Higher transportation and installation cost. High thermal conductivity No electrical and magnetic insulation properties Conducts electricity Not conducive to application in areas with dense electrical transmission lines and telecommunication lines. High energy consumption during field use and production Ongoing maintenance costs Hanwei GRE Pipe Common Steel Pipe Page 6

HANWEI GRE PIPE vs STEEL PIPE Common Steel Pipe Low operation cost Very smooth inner wall which reduces paraffin and scale build up Very low surface friction increases efficiency of flow rates and volumes Low maintenance cost. Requires minimal or no maintenance. High operation cost Rough inner surface Easy to form scale and paraffin deposits High surface friction results in loss of working pressure and flow rates. High ongoing maintenance costs and operational closures. Requires corrosion protection coatings, cathodic protection and corrosion monitoring. Page 7

HANWEI GRE PIPE vs STEEL PIPE Pipe Size (Inch) Material Description Cost Saving on Investment (%) 6 GRE Pipe 35 Bar API Thread THMxTHF 32.7 Steel Pipe API-5L 5.6 Gr.B Seamless PExPE with Ext. 3 Layer PE Coat or equivalent 8 39.7 Page 8

HANWEI GRE PIPE vs STEEL PIPE Pipe Size (Inch) Material Description Cost Saving on Investment (%) 10 GRE Pipe 35 Bar API Thread THMxTHF 32.7 Steel Pipe API-5L 7.0 Gr.B Seamless PExPE with Ext. 3 Layer PE Coat or equivalent 14 GRE Pipe 10 Bar Rex-Bond TMxTF 46.0 Page 9

HANWEI GRE PIPE vs STEEL PIPE Pipe Size (Inch) Material Description Cost Saving on Investment (%) 20 GRE Pipe 10 Bar Rex-Bond TMxTF 43.4 Steel Pipe API-5L 7.0 Gr.A Seamless PExPE with Int. & Ext. Epoxy Coal Tar Coat or equivalent 24 35.4 Steel Pipe API-5L 8.0 Gr.B Seamless PExPE with Int. TNF Liner Ext. PE Adhesive Tape or equivalent Page 10

HANWEI GRE PIPE INSTALLATION VIDEO Page 11