EXHIBIT 4.2
CRUDE OIL MUTUAL SUPPLY
FRAMEWORK AGREEMENT FOR YEAR 2005
BETWEEN
PETROCHINA COMPANY LIMITED
AND
CHINA PETROCHEMICAL CORPORATION
DECEMBER 2004
CRUDE OIL MUTUAL SUPPLY FRAMEWORK AGREEMENT FOR YEAR 2005
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 2005.
I. QUANTITIES AND VARIETIES OF CRUDE OIL TO BE SUPPLIED HEREUNDER
1. In 2005, PetroChina shall supply Sinopec with 8 million tons of
domestic onshore crude oil, including 6 million tons of blended oil
produced at the Daqing Oil Region, 1.30 million tons of oil produced
at the Jizhong Oil Region, 350 thousand tons of oil produced at the
Dagang Oil Region and 350 thousand tons of oil produced at the
Changqing Oil Region.
2. In 2005, Sinopec shall supply PetroChina with 1.40 million tons of
domestic onshore crude oil, including 500 thousand tons produced at
the Shengli Oil Region and 900 thousand tons produced at the Tahe
Oil Region.
3. The parties hereto 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.
III. QUARTERLY SUPPLY AGREEMENTS; SALES AND PURCHASE CONTRACTS ON AN
ENTERPRISE-BY-ENTERPRISE BASIS
Quarterly supply agreements shall be entered into by and between
PetroChina Natural Gas & Pipeline Company and the 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.
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IV. ADDITIONAL PROVISIONS
1. The price of crude oil to be supplied hereunder shall be settled on the
basis of the standard crude oil price published by the National
Development and Reform Commission each month and the crude oil premium
mutually agreed between the parties.
2. 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
hereto. In case of any default thereof, the parties hereto shall cooperate
with each other in seeking a solution thereto.
3. Where any change occurs to this Agreement in the performance hereof, it
shall be resolved by the parties hereto through consultations.
PLANNING DEPARTMENT, PRODUCTION MANAGEMENT DEPARTMENT,
PETROCHINA COMPANY LIMITED CHINA PETROCHEMICAL CORPORATION
By: /s/ Xxx Xxxxxxx By: /s/ Xxxxx Xxxxxxx
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Date: December 1, 2004 Date: December 1, 2004
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