Crude Oil Mutual Supply Framework Agreement - PetroChina Co. Ltd. and China Petrochemical Corp.
CRUDE OIL MUTUAL SUPPLY FRAMEWORK
AGREEMENT FOR YEAR 2002
BETWEEN
PETROCHINA COMPANY LIMITED
AND
CHINA PETROCHEMICAL CORPORATION
BEIJING
JANUARY 2002
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CRUDE OIL MUTUAL SUPPLY FRAMEWORK AGREEMENT FOR YEAR 2002
PetroChina Company Limited ("PetroChina") and China Petrochemical
Corporation ("Sinopec"), following friendly consultations and on the basis of
equality, have reached this Agreement (this "Agreement") on mutual supply of
crude oil in the year of 2002.
I. QUANTITIES AND VARIETIES OF CRUDE OIL TO BE SUPPLIED HEREUNDER
1. In 2002, PetroChina shall supply Sinopec with 14.45 million
tons of domestic onshore crude oil, including 9.5 million tons
of oil produced at the Daqing Oil Region, 1.25 million tons of
oil produced at the Jizhong Oil Region, 1.15 million tons of
oil produced at the Dagang Oil Region, 550 thousand tons of
oil produced at the Jidong Oil Region, 900 thousand tons of
oil produced at the Changqing Oil Region and 1.10 million tons
of oil produced at the Tarim Basin Oil Region.
2. In 2002, Sinopec shall supply PetroChina with 700 thousand
tons of domestic onshore crude oil, including 400 thousand
tons produced at the Shengli Oil Region and 300 thousand tons
produced at the Tahe Oil Region.
3. The Parties shall, in principle, make available crude oil of
the above supply and take delivery thereof on an evenly
distributed basis. The quarterly mutual supply of crude oil
may be adjusted as necessary by mutual agreement thereon and
in light of the availability of crude oil resources, price and
the State's macro-economic planning requirements.
II. QUALITY OF CRUDE OIL
Matters with respect to the quality of the crude oil to be supplied
hereunder shall be handled pursuant to applicable provisions of SY7513-88
Technical Conditions of Crude Oil at Wellhead. PetroChina hereby acknowledges
SinoPec's requirement that quality of crude oil produced at Tarim Basin Oil
Region shall remain substantially even.
III. QUARTERLY SUPPLY AGREEMENTS; SALES AND PURCHASE CONTRACTS ON AN
ENTERPRISE-BY-ENTERPRISE BASIS
Quarterly supply agreements shall be entered into between PetroChina
Natural Gas & Pipeline Company and Production and Management Department of
Sinopec. After the quarterly plans have been made known to their respective
subsidiaries, PetroChina's regional companies (including its oil fields,
refineries and pipeline companies) and Sinopec's subsidiaries (including its oil
fields and refineries) will enter into specific sales and purchase contracts.
The total quantities and varieties of crude oil to be supplied under such
contracts shall be consistent with those specified under the above quarterly
supply agreements.
IV. ADDITIONAL PROVISIONS
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1. Payment of the price of crude oil to be supplied hereunder
shall be made on a timely basis and pursuant to principles
agreed upon by the Parties. In case of any default thereof,
the Parties shall cooperate with each other in seeking a
solution thereto.
2. Where any change occurs to this Agreement in the performance
hereof, it shall be resolved by the Parties through
consultations.
PLANNING DEPARTMENT, PRODUCTION MANAGEMENT DEPARTMENT,
PETROCHINA COMPANY LIMITED CHINA PETROCHEMICAL CORPORATION
By: s/Wang Guoliang By: s/Zhou Zhikui
Date: January 30, 2002 Date: January 30, 2002
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CRUDE OIL MUTUAL SUPPLY SUPPLEMENTARY AGREEMENT FOR YEAR 2002
PetroChina Company Limited ("PetroChina") and China Petrochemical
Corporation ("Sinopec"), following friendly consultations and on the basis of
the mutual understanding reached by and between high-ranking officers of both
Parties and the Crude Oil Mutual Supply Framework Agreement ("Framework
Agreement") have reached this Supplementary Agreement ("Supplementary
Agreement") on an additional mutual supply of crude oil in the year of 2002.
I. In 2002, PetroChina shall supply Sinopec with an additional 800
thousand tons of domestic onshore crude oil, which makes the aggregate
of its oil supply for year 2002 reach 15.25 million tons, including an
additional 300 thousand tons of oil from Tarim Basin Oil Region which
makes the aggregate of oil supply from Tarim Basin Oil Region reach 1.4
million tons, an additional of 200 thousand tons of oil from Changqing
Oil Region which makes the aggregate of oil supply from Changqing Oil
Region reach 1.10 million of tons and an additional of 300 thousand
tons of oil from Daqing Oil Region which makes the aggregate of oil
supply from Daqing Oil Region reach 9.8 million tons (among which, 7
million tons are supplied to Beijing Yanshan PetroChemical Co., Ltd.)
while varieties and quantities of crude oil supply from any other oil
regions as contemplated under the Framework Agreement shall remain the
same.
II. In 2002, Sinopec shall supply PetroChina with an additional 100
thousand tons of domestic onshore crude oil produced at the Tahe Oil
Region which makes the aggregate of oil supply from Tahe Oil Region
reach 400 thousand tons.
III. The Parties shall, in principle, make available crude oil of the supply
so increased as contemplated hereunder and take delivery thereof on an
evenly distributed basis after execution of this Supplementary
Agreement. In case of any change occurring to the Framework Agreement
and this Supplementary Agreement in the quarterly performance thereof,
it shall be resolved by the Parties through consultations.
PLANNING DEPARTMENT, PRODUCTION MANAGEMENT DEPARTMENT,
PETROCHINA COMPANY LIMITED CHINA PETROCHEMICAL CORPORATION
By: s/ Wu Mei By: s/Zhu Jianmin
Date: March 25, 2002 Date: March 25, 2002