Exhibit 4.2
CRUDE OIL MUTUAL SUPPLY
FRAMEWORK AGREEMENT FOR YEAR 2006
BETWEEN
PETROCHINA COMPANY LIMITED
AND
CHINA PETROCHEMICAL CORPORATION
BEIJING
MARCH 2006
CRUDE OIL MUTUAL SUPPLY FRAMEWORK AGREEMENT FOR YEAR 2006
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 2006.
I. QUANTITIES AND VARIETIES OF CRUDE OIL TO BE SUPPLIED HEREUNDER
1. In 2006, PetroChina shall supply Sinopec with 7.45-7.95 million tons
of domestic onshore crude oil, including 5 million tons of blended oil
produced at the Daqing Oil Region, 0.95 million tons of oil produced
at the Jizhong Oil Region, 0.75-1 million tons of oil produced at the
Changqing Oil Region, and 0.75-1 million tons of oil produced at the
Tarim Basin Oil Region.
2. In 2006, Sinopec shall supply PetroChina with 1.20 million tons of
domestic onshore crude oil, including 0.7 million tons produced at the
Tahe Oil Region and 0.5 million tons produced at the Shengli 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. 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 Xxxxxxx 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: XXXXX Xxxxxxxx
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Date: March 10, 2006 Date: March 10, 2006
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