Financial Obligation Form 8 K

Blue Dolphin Services Co. ("BDSC"), a wholly owned subsidiary of Blue Dolphin Energy Company ("Blue Dolphin"), maintains an office lease in Houston, Texas. On August 31, 2024, the fifth amendment to the office lease between BDSC and TR 801 Travis LLC expired. On October 30, 2024, BDSC signed a new 24-month lease extension, the sixth amendment, with the lessor named therein (the "Lessor"). The sixth amendment has an effective date of September 1, 2024.

Under the sixth amendment, months 1 (September 2024) and 2 (October 2024) cover the holdover period wherein management negotiated the lease with Lessor. During the holdover period, BDSC was not subject to a holdover rate but paid the expiring rate under the fifth amendment to the office lease of $30.00 per square foot. During months 3 through 12, which began on November 1, 2024, Lessor reduced the annual base rent to $29.00 per square foot. During months 13 through 24 the annual base rent will increase to $30.00 per square foot. As additional rent, BDSC will pay a proportionate share of basic building costs (e.g., utilities) up to a maximum of $1,500 per month. BDSC will also receive an improvement allowance of $1.50 per square foot. However, the improvement allowance will expire six months from the lease signing date. The total rental area under the sixth amendment is 9,961 square feet, an increase of 2,268 square feet to accommodate additional personnel.