Exhibit 4.2
CRUDE OIL MUTUAL SUPPLY
FRAMEWORK AGREEMENT FOR YEAR 2007
BETWEEN
PETROCHINA COMPANY LIMITED
AND
CHINA PETROCHEMICAL CORPORATION
BEIJING
JANUARY 2007
CRUDE OIL MUTUAL SUPPLY FRAMEWORK AGREEMENT FOR YEAR 2007
PetroChina Company Limited ("PetroChina") and China Petrochemical
Corporation ("Sinopec"), following friendly consultations and on the basis of
equality, have entered into this Agreement (this "Agreement") on mutual supply
of crude oil in the year of 2007.
I. QUANTITIES AND VARIETIES OF CRUDE OIL TO BE SUPPLIED HEREUNDER
1. In 2007, PetroChina shall supply Sinopec with 7.1 million tons of domestic
onshore crude oil, including 4.8 million tons of blended oil produced at
the Daqing Oil Region (excluding replacement crude oil), 0.7 million tons
of oil produced at the Jizhong Oil Region, 0.8 million tons of oil
produced at the Changqing Oil Region, and 0.8 million tons of oil produced
at the Tarim Basin Oil Region.
2. In 2007, Sinopec shall supply PetroChina with 1.12 million tons of
domestic onshore crude oil, including 0.5 million tons produced at the
Tahe Oil Region and 0.5 million tons produced at the Shengli Oil Region,
60,000 tons produced at Jilin (Yaoyintai) Oil Region, 40,000 tons produced
at Inner Mongolia (Baiyinchagan) Oil Region, and 20,000 tons produced at
Sinopec Southern Exploration and Production Company (Baise).
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)
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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. PRICE OF CRUDE OIL
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.
V. PAYMENT GUARANTEE
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.
PetroChina and Sinopec agree to be guarantors, and to take ordinary guarantee
liabilities for the failure of timely payment of the price of crude oil and
other payments by their respective oil refineries. The payer shall make timely
payments to the payee upon receipt of and pursuant to the payment notice.
PLANNING DEPARTMENT, PRODUCTION MANAGEMENT DEPARTMENT,
PETROCHINA COMPANY LIMITED CHINA PETROCHEMICAL CORPORATION
By: /s/ XX Xxx By: /s/ XXXXX Xxxxxxxx
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Date: January 2007 Date: January 2007
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