Exhibit 4.4
CRUDE OIL MUTUAL SUPPLY
FRAMEWORK AGREEMENT FOR YEAR 2008
BETWEEN
PETROCHINA COMPANY LIMITED
AND
CHINA PETROCHEMICAL CORPORATION
BEIJING
JANUARY 2008
CRUDE OIL MUTUAL SUPPLY FRAMEWORK AGREEMENT FOR YEAR 2008
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 2008.
I. QUANTITIES AND VARIETIES OF CRUDE OIL TO BE SUPPLIED HEREUNDER
1. In 2008, PetroChina shall supply Sinopec with 6.56 million tons of
domestic onshore crude oil, including 4.00 million tons of blended oil
produced at the Daqing Oil Region (excluding replacement crude oil),
0.55 million tons of oil produced at the Jizhong Oil Region, 1.40
million tons of oil produced at the Changqing Oil Region, 0.60 million
tons of oil produced at the Tarim Basin Oil Region, and 10,000 tons of
oil produced at PetroChina Zhejiang Exploration Company.
2. In 2008, Sinopec shall supply PetroChina with 1.13 million tons of
domestic onshore crude oil, including 0.50 million tons produced at
the Tahe Oil Region and 0.50 million tons produced at the Shengli Oil
Region, 60,000 tons produced at Jilin (Yaoyintai) Oil Region, 65,000
tons produced at Inner Mongolia (Baiyinchagan) Oil Region, and 5,000
tons produced at Sinopec Southern Exploration and Production Company.
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 issued to the respective
subsidiaries, PetroChina's relevant regional companies (including its oil
fields, refineries and
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pipeline companies) and Sinopec's relevant 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. 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 assume joint and several
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/ XXX Xxxxxxx
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Date: January 8, 2008 Date: January 8, 2008
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