Document:

EX-4.23

Exhibit 4.23

English Translation of Chinese Original

Form
of Risk Operation Service Business Assets Transfer Agreement

By and between

[Applicable CNPC Subordinate Enterprise]

And

[Applicable PetroChina Branch]

November 19, 2008

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TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE 1

	 	DEFINITIONS
	 	 	3	 
	ARTICLE 2

	 	DELIVERY OF ASSETS
	 	 	4	 
	ARTICLE 3

	 	TRANSFER OF ASSETS
	 	 	5	 
	ARTICLE 4

	 	CLOSING
	 	 	5	 
	ARTICLE 5

	 	CLOSING CONDITIONS
	 	 	6	 
	ARTICLE 6

	 	POST-EXECUTION OBLIGATIONS OF PARTY A
	 	 	7	 
	ARTICLE 7

	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTY A
	 	 	7	 
	ARTICLE 8

	 	REPRESENTATIONS AND WARRANTIES OF PARTY B
	 	 	7	 
	ARTICLE 9

	 	EMPLOYEES
	 	 	8	 
	ARTICLE 10

	 	ACCESS TO INFORMATION
	 	 	8	 
	ARTICLE 11

	 	FORCE MAJEURE
	 	 	8	 
	ARTICLE 12

	 	COMMUNICATIONS
	 	 	8	 
	ARTICLE 13

	 	GOVERNING LAW AND DISPUTE RESOLUTION
	 	 	9	 
	ARTICLE 14

	 	OTHER PROVISIONS
	 	 	9	 
	EXHIBIT 1

	 	FURTHER REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTY A
	 	 	11	 
	EXHIBIT 2

	 	SCOPE OF THE RISK OPERATION SERVICE BUSINESS ASSETS
	 	 	14	 

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Risk Operation Service Business Assets Transfer Agreement

This Risk Operation Service Business Assets Transfer Agreement (this “Agreement”) is entered into
this 19th day of November, 2008 in [address of execution], by and between [applicable CNPC
subordinate enterprise] (“Party A”), with its business license number being [_________] and
registered address being at [_________], and [applicable PetroChina branch] (“Party B”), with its
business license number being [_________] and registered address being at [_________].

     Whereas,

	 	(i)	 	Party A is a/an [enterprise type] incorporated on [_________] and is a wholly-owned subsidiary
of China National Petroleum Corporation (“CNPC”);]

	 	(ii)	 	Party B is a branch of PetroChina Company Limited (“PetroChina”) incorporated on
[_________];

	 	(ii)	 	Party A agrees to transfer to Party B, and Party B agrees to purchase from Party A, the assets
(including liabilities) of Party A’s risk operation service business, subject to the terms and
conditions of this Agreement.

     Party A and Party B hereby reach agreement as follows:

Article 1          Definitions

	 	1.1	 	For purposes of this Agreement, unless the context otherwise specifies, terms in this Agreement and
the exhibits hereto shall have the meanings set forth below:

	 	 	 
	“Agreement” or this “Agreement”

	 	refers to this Risk Operation
Service Business Assets Transfer
Agreement dated November 19, 2009
by and between the parties
hereto;
	 
	 	 
	“Party A”

	 	refers to [applicable CNPC
subordinate enterprise] and its
subsidiaries, branches and other
affiliated entities; unless
otherwise required by the
context, the term “Party A” shall
include all the assets and
business of Party A;
	 
	 	 
	“Party B”

	 	refers to [applicable PetroChina
branch] and its subsidiaries,
branches and other affiliated
entities; unless otherwise
required by the context, the term
“Party B” shall include all the
assets and business of Party B;
	 
	 	 
	“Risk Operation Service Business”

	 	refers to the full-range risk
operation services discussed
hereunder provided by Party A at
Party A’s own expense and risk,
to PetroChina’s development and
production operation in the
hard-to-exploit blocks as
designated by PetroChina;
	 
	 	 

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	“Risk Operation Service Business Assets”

	 	refers to the assets to be
transferred hereunder, which are
generated by Party A’s Risk
Operation Service Business, the
scope of which is as set forth in
detail in Exhibit 2 hereto;
	 
	 	 
	“Closing”

	 	has the meaning set forth in
Article 4 hereof;
	 
	 	 
	“Closing Date”

	 	the later of November 30, 2008 or
the date on which all the
conditions specified in Article 5
below have been satisfied;
	 
	 	 
	“Base Date”

	 	refers to August 31, 2008, the
date on which the assets
appraisal is conducted for the
purposes of the transfer
contemplated hereunder;
	 
	 	 
	“Audit Report”

	 	refers to the Audit Report (Tian
Yuan Quan Shen Zi [2008] No.
[______]) dated [______], 2008
prepared by Beijing Tianyuanquan
Certified Public Accountants Ltd.
for the purposes of the transfer
contemplated hereunder; and
	 
	 	 
	“Appraisal Report”

	 	refers to the Assets Appraisal
Report (Zhong Qi Hua Ping Bao
Zi(2008) No. 378-[______]) dated
October 24, 2008 issued by China
Enterprise Appraisal Co., Ltd.
	 
	 	 

	 	1.2	 	Unless otherwise specified herein, for the purposes of this Agreement,

	 	(a)	 	All references herein to a party shall include the successors thereof;
	 
	 	(b)	 	All references herein to Articles or Schedule shall refer to Articles or Schedules of this Agreement;
	 
	 	(c)	 	This Agreement shall be construed to refer to this Agreement as extended, amended, modified or supplemented from time to time;
	 
	 	(d)	 	Headings used herein are for convenience only, and shall not in any way affect the meaning or performance of this Agreement; and
	 
	 	(e)	 	Any subsidiary or affiliated entity of Party A shall not include Party B or any of its subsidiaries or affiliated entities.

Article 2          Delivery of Assets

	 	2.1	 	Subject to the terms and conditions of this Agreement, Party A shall deliver to Party B, and Party B
shall take delivery from Party A of, the Risk Operation Service Business Assets and any and all the
existing and future rights attached thereto, in reliance on Party A’s relevant representations,
warranties and covenants contained herein.

	 	2.2	 	The Risk Operation Service Business Assets are described in greater detail in Exhibit 2 hereto.

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Article 3          Transfer of Assets

     The parties hereto agree that the consideration for the Risk Operation Service Business Assets
shall be RMB [_________], as determined based on the Appraisal Report dated August 31, 2008-the Base
Date, prepared by China Enterprise Appraisal Co., Ltd., plus any change to the equity attributable
to the Risk Operation Service for the period from the Base Date to the Closing Date as reflected on
Party A’s financial statements, and shall be paid in cash to Party A.

Article 4          Closing

	 	4.1	 	Date of Closing

The closing of the assets transfer contemplated hereunder (the “Closing”) shall occur on the later
of November 30, 2008 or the date on which all the conditions set forth in Article 5 herein below
are satisfied (either the “Closing Date”).

	 	4.2	 	At the Closing, Party A shall:

	 	4.2.1	 	deliver to Party B:

	 	(i)	 	the Risk Operation Service Business Assets and any and all the certificates, deeds, operating licenses,
title documents and other instruments that evidence any and all the title and operating rights to
and in the Risk Operation Service Business Assets are vested with Party B, including but not limited to,
land use certificates, building title certificates, accounting books and records, property insurance
policies and receipts for insurance premium payment;
	 
	 	(ii)	 	any and all the third party consents necessary for Party A’s transfer to Party B of the Risk Operation
Service Business Assets, including but not limited to, consents from relevant creditors and consents
from relevant governmental authorities; and
	 
	 	(iii)	 	any and all the effective contracts, books, certificates, records and other instruments (including
financial records) possessed or controlled by Party A in connection with the Risk Operation Service Business Assets, and

	 	4.2.2	 	allow Party B to take possession of the Risk Operation Service Business Assets.

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	 	4.3	 	Party B shall obtain the Risk Operation Service Business Assets as from the Closing Date (inclusive).
As from the Closing Date, Party B shall become the sole owner of the Risk Operation Service Business
Assets and have all the operating rights in and to the Risk Operation Service Business Assets.
	 
	 	4.4	 	Unless otherwise specified herein, any and all the profits, interests, creditor’s rights, debts and
other rights and obligations generated by the Risk Operation Service Business Assets prior to the
Closing Date shall be exercised and performed by Party A.
	 
	 	4.5	 	In case Party A fails to fully comply with Section 4.2 above, Party B may elect to consummate the
Closing to the extent practicable without any prejudice to any other remedies and rights available to it under this Agreement.

Article 5          Closing Conditions

	 	5.1	 	The Closing shall be subject to the satisfaction of all the following preconditions:

	 	(a)	 	Party B has completed its due diligence with respect to the status of the Risk Operation Service Business Assets;
	 
	 	(b)	 	Party A has obtained from its creditors and any other relevant third parties any and all the necessary
consents for Party A’s transfer of the Risk Operation Service Business Assets to Party B;
	 
	 	(c)	 	there has been no material adverse change to the operation or technical performance of the Risk Operation Service Business; and
	 
	 	(d)	 	As at the Closing Date, Party A’s representations, warranties and covenants contained herein shall remain true, accurate, complete and effective.

	 	5.2	 	The parties hereto shall make all reasonable efforts to ensure that all the conditions set forth
in Section 5.1 above will have been satisfied by November 30, 2008. Where any condition set forth
in Section 5.1 fails to be satisfied by November 30, 2008 for any reason on the part of Party A, Party B shall have the right to terminate this Agreement at its discretion.
	 
	 	5.3	 	Each of the parties hereto agrees that where any regulatory authority in the jurisdiction in which
its shares are listed and relevant PRC governmental authorities intend to impose certain conditions
on the approval of the transfer of the Risk Operation Service Business Assets as contemplated hereunder,
the parties will negotiate corresponding and appropriate amendments to this Agreement and other relevant
Closing conditions. Where no agreement can be reached through such negotiations and the performance of this Agreement

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	 	 	 	will result in either Party A or Party B violating any PRC law and/or relevant listing rules, either
Party A or Party B, as the case may be, shall have the right to terminate this Agreement at its sole discretion.

Article 6          Post-execution Obligations of Party A

	 	6.1	 	Party A undertakes that it will use its best efforts to provide Party B with any and all materials
and assistance in connection with the operation and maintenance of any Risk Operation Service Business reasonably requested by Party B.
	 
	 	6.2	 	Without the consent of Party B, Party A may not make use of or disclose or divulge to any third party
any information relating to any Risk Operation Service Business Assets except where the information
is otherwise available in the public domain or where disclosure is required by the orders
of a court having competent jurisdiction or the relevant regulatory authorities.

Article 7          Representations, Warranties and Covenants of Party A

	 	7.1	 	Party A hereby makes the representations, warranties and covenants in accordance with the terms set
forth under Exhibit 1 (“Warranties”) to Party B, and acknowledges that the execution by Party B of
this Agreement is based on the reliance of Party B on such Warranties.
	 
	 	7.2	 	Each Warranty of Party A set forth in Exhibit 1 shall be severable and independent, and none of other
provisions in this Agreement or the exhibits hereto may limit such Warranties.
	 
	 	7.3	 	Party A hereby further undertakes to indemnify Party B in all for and against all losses or liabilities,
including but not limited to, the decrease of the value of any Risk Operation Service Business
Assets, arising from breaches of any Warranties by Party A. In the event of any breach by Party A of
Article 1 or 2 of Exhibit 1 hereto, Party B shall have the right to terminate this Agreement.
	 
	 	7.4	 	Both before and after the Closing, Party A shall promptly inform Party B in writing of any violations of
the Warranties or any matters not consistent with the Warranties it becomes aware of.

Article 8          Representations and Warranties of Party B

     Party B hereby represents and warrants to Party A that from the date of this Agreement to the
Closing Date (inclusive):

	 	8.1	 	Party B is a company duly organized and validly existing under the laws of the PRC and has statutory corporate rights.
	 
	 	8.2	 	Party B has all necessary authority to enter into and perform this Agreement.
	 
	 	8.3	 	The execution and performance of this Agreement by Party B does not violate any laws or regulations applicable to it.

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	 	8.4	 	This Agreement constitutes a valid and binding contract of Party B.

Article 9          Employees

     Party B may conduct its employment management in its own discretion for the purpose of continuous
operation of the Risk Operation Service Business Assets, including employing the former employees
employed by Party A for the Risk Operation Service Business.

Article 10          Access to Information

     From the date of this Agreement, Party A shall provide Party B and any persons authorized by Party
B with and shall cause such person to be provided with access to (including the right to make
copies of, where necessary) all materials regarding the Risk Operation Service Business Assets, and
all books, title instruments, contracts, records and any other documents regarding the Risk
Operation Service Business Assets, and the executive officers and employees of Party A shall
promptly furnish such materials and explanations with respect thereto to any such persons.

Article 11          Force Majeure

     If a party has been prevented from performing all or part of its obligations provided in this
Agreement because of an event of Force Majeure, including earthquake, typhoon, flood, fire, war and
any governmental interference, or change of circumstances, it shall immediately notify the other
Party in writing, and shall provide details of the event of Force Majeure or change of
circumstances, as well as valid evidence supporting its inability to perform all or part of its
obligations hereunder or the reasons for the delayed performance, within seven (7) days following
the occurrence of such an event. The parties shall negotiate to terminate this Agreement, partially
release or delay the performance of the affected obligations, according to the influence of such an
event on the performance of this Agreement.

Article 12          Communications

     Notices or other communications required to be given by either party hereto pursuant to this
Agreement shall be written in Chinese and sent by personal delivery or in registered mail or
facsimile to the address/fax number of the other party set forth below, and shall be deemed to have
been duly given (i) on the date of delivery if by personal delivery, (ii) seven days (excluding
public holidays) after being delivered to postal services (as indicated by the postmark) if by
registered mail, or (iii) upon the completion of transmission if by facsimile, provided however
that the sender shall provide the intended recipient with the electronic answerbacks printed out by
the sender’s facsimile machine indicating the complete transmission of the relevant notice or other
communication to the intended recipient.

     If to Party A:

[applicable CNPC subordinate enterprise]

Address: [______________]

Fax: [_______________]

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     If to Party B:

[applicable PetroChina branch]

Address: [_______________]

Fax: [______________]

Article 13          Governing Law and Dispute Resolution

	 	13.1	 	This Agreement shall be governed by and construed in accordance with the laws of the PRC.

	 	13.2	 	Any dispute arising from, out of or in connection with this Agreement shall be settled through friendly
consultations between Party A and Party B. If any dispute cannot be settled through consultations,
such dispute shall be submitted to the respective supervisory organ of each party for resolution
through further consultations. Where any dispute still fails to be resolved through such further
consultations, either Party A or Party B may refer such dispute to the Beijing Arbitration Commission.
Such dispute shall be finally settled by arbitration in accordance with the then effective rules
of arbitration of the Beijing Arbitration Commission. The arbitral award is final and binding upon both parties.

Article 14          Other Provisions

	 	14.1	 	The parties shall be solely responsible for their own costs and expenses arising from the transfer
of the Risk Operation Service Business Assets hereunder according to the applicable laws.
	 
	 	14.2	 	The invalidity, illegality or unenforceability of any term or other provision of this Agreement
in any aspect at any time may not affect or prejudice the legality, validity and enforceability
of any other terms and provisions of this Agreement.
	 
	 	14.3	 	This Agreement may not be assigned by either party hereto without consent from the other party hereto.
	 
	 	14.4	 	This Agreement together with any documents referred to herein shall constitute an entire agreement
between the parties hereto. The parties expressly represent that any amendment to this Agreement shall be invalid unless in writing.
	 
	 	14.5	 	This Agreement shall come into effect upon being executed and stamped by the representative of each party.

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Party A

[applicable CNPC subordinate enterprise] (company seal)

Authorized representative: /s/ [                  ]

Party B:

[applicable PetroChina branch] (company seal)

Authorized representative: /s/ [                  ]

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Exhibit 1 Further Representations, Warranties and Covenants of Party A

1. Corporate Matters

	1.1	 	Party A is a/an [enterprise type] duly organized and validly existing under the laws of the PRC and has full and legal rights to own its assets and operate its business.
	 
	1.2	 	The business license, articles of association and other documents of Party A provided to Party B
are accurate and complete, and for documents provided in photocopy, photocopies conform with the original.
	 
	1.3	 	Party A has all necessary power and authority to execute this Agreement and perform its obligations hereunder.
	 
	1.4	 	This Agreement and any other documents to be executed by Party A pursuant to this Agreement shall
constitute the valid and binding obligations of Party A, which are enforceable in accordance with the relevant terms.

2. Approvals

	2.1	 	The transfer of the Risk Operation Service Business Assets by Party A to Party B shall be conducted in accordance with the PRC law.
	 
	2.2	 	At the Closing Date, all governmental approvals required for the transfer of the Risk Operation Service
Business Assets, including but not limited to, the required approval for the change of land use rights
certificates and title certificates, shall have been obtained, and Party A does not receive any notice that such approvals have been cancelled.
	 
	2.3	 	Party A has been granted all necessary authorization for the execution and performance of this Agreement.
	 
	2.4	 	The execution and performance of this Agreement does not violate any applicable laws or regulations.

3. Ownership and Conditions of Assets

	3.1	 	Except as otherwise indicated, none of the Risk Operation Service Business Assets are subject to
any encumbrance of any form. In the event of any legal proceedings in respect of financial guarantees
or any other disputes arising prior to the Closing Date, such proceedings or disputes shall be assumed
by Party A. Details regarding the Risk Operation Service Business Assets set forth in Exhibit 2 are
true, complete and accurate in all aspects.
	 
	3.2	 	Party A shall have full ownership and/or use right to Risk Operation Service Business Assets, and
there does not exist any requirement requiring that all or any portion of the Risk Operation Service
Business Assets shall be transferred to any third party.
	 
	3.3	 	The construction and operation of the Risk Operation Service Business Assets have been approved by
the competent PRC authorities and do not violate any PRC law or regulation.

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	3.4	 	Party A has been operating the Risk Operation Service Business Assets in compliance with the applicable PRC laws and regulations.
	 
	3.5	 	The machines, equipment, buildings and other overground and underground structures forming a part of
the Risk Operation Service Business Assets are substantially in a sound status and fit for their intended purposes.
	 
	3.6	 	In terms of the demarcation lines or passages of any land, buildings and other structures forming a
part of the Risk Operation Service Business Assets, there are not any disputes with the adjacent property owners or the competent authorities of state-owned land resources.
	 
	3.7	 	There has never occurred any material interruption in the public utilities, such as the water supply,
drainage, electricity supply or gas supply, in the buildings or other overground and underground structures
forming a part of the Risk Operation Service Business Assets.
	 
	3.8	 	Party A holds good and transferable title and/or use right to the land, buildings and other structures
that form a part of the Risk Operation Service Business Assets and are owned by Party A or the Risk Operation
Service Business, and is the legal and de facto owner thereof under applicable laws and regulations.

4. Continuous Operations

To the knowledge of Party A, there was/is not any circumstance which may materially affect the
continuous operation of the Risk Operation Service Business Assets after Closing.

5. Confidential Information

Any activity conducted by Party A on the Risk Operation Service Business Assets does not infringe
on or abuse any know-how, customer or supplier list, trade secrets, proprietary technologies,
patents or other confidential information of any third parties.

6. Environmental Compliance

In the course of construction and operation of the Risk Operation Service Business, Party A has
always been in full compliance with any and all applicable laws and regulations regarding
environmental protection (“Environmental Laws and Regulations”), and has never been subject to any
governmental punishment due to the violation of any Environmental Laws and Regulations. Party A has
sufficient resources and facilities, and will, at Party B’s request, assist Party B after Closing
in complying with all Environmental Laws and Regulations which are currently in effect.

7. Accuracy of the Information Provided

	7.1	 	All the information contained in this Agreement (including without limitation, those covered in the preamble hereof) are true and accurate.
	 
	7.2	 	All the information provided by Party A prior to the execution of this Agreement to Party B and its
professional advisors, officers and other staff in connection with the Risk Operation Service Business
were/will be true and accurate at the time of provision

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	 	 	and during the period from the execution of this Agreement to the Closing Date. In addition, there does
not exist any fact or circumstance that may render any of the above information untrue, inaccurate
or misleading and has not been disclosed to Party B or its professional advisors in writing.

8. Indemnification

	8.1	 	Party A undertake to keep Party B indemnified for any claims arising from Party A’s violation of
any provision hereunder, including without limitation, Article 7 herein and “Further Representations, Warranties and Covenants of Party A” as set forth in Exhibit 1.

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Exhibit 2 Scope of the Risk Operation Service Business Assets

The Risk Operation Service Business Assets shall consist of [_________], including but not
limited to, assets relating to the Risk Operation Service Business and the assets, liabilities and
interests associated therewith, which in particular, include the following assets:

	1.	 	such assets as the buildings and other structures, cash, bank deposits and accounts, inventories,
receivables, machinery and equipment and ancillary devices and facilities owned by Party A or
any entity forming a part of the Risk Operation Service Business;
	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and supplements
thereto) executed by Party A in respect of the Risk Operation Service Business Assets, including
title to buildings and guarantees with respect to such contracts and agreements;
	 
	3.	 	if transferrable in accordance with applicable laws, all the rights under any and all the permits,
licenses, approval certificates, certificates, power of attorney, and any other similar documents
possessed or owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	4.	 	claims, set-off rights or any other similar rights of Party A or any entity forming a part of the
Risk Operation Service Business Assets, in each case, relating to or arising from the Risk Operation Service Business Assets; and
	 
	5.	 	business records, accounting records, operating records, operating data, operating statistical data,
manuals, maintenance handbooks, training handbooks and relevant technical records, technical documentation,
technical data, technical drawings, technical handbooks, technical books, project research and development
records and any other know-how, whether saved in written, electronic or any other media.

Any other assets set forth in the Appraisal Report. The parties hereto agree that where they have
any disagreement on the understanding of the Risk Operation Service Business Assets set forth in
this Schedule, the contents of the Appraisal Report shall prevail.

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Exhibit 2 to Risk Operation Service Business Assets Transfer Agreement with Jilin

Petroleum Group Company Limited

Scope of the Risk Operation Service Business Assets

The Risk Operation Service Business Assets shall consist of such subsidiary entities of Party A as
Xinmu Oil and Gas Extraction Plant, Qian-an Oil and Gas Extraction Plant, and Xinli Oil and Gas
Extraction Plant, including but not limited to, assets relating to the Risk Operation Service
Business and the assets, liabilities and interests associated therewith, which in particular,
include the following assets:

	1.	 	such assets as the buildings and other structures, cash, bank deposits and accounts, inventories,
receivables, machinery and equipment and ancillary devices and facilities owned by Party A or
any entity forming a part of the Risk Operation Service Business;
	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and supplements
thereto) executed by Party A in respect of the Risk Operation Service Business Assets, including title to buildings and guarantees with respect to such contracts and agreements;
	 
	3.	 	if transferrable in accordance with applicable laws, all the rights under any and all the permits,
licenses, approval certificates, certificates, power of attorney, and any other similar documents
possessed or owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	4.	 	claims, set-off rights or any other similar rights of Party A or any entity forming a part of the Risk
Operation Service Business Assets, in each case, relating to or arising from the Risk Operation Service Business Assets; and
	 
	5.	 	business records, accounting records, operating records, operating data, operating statistical data,
manuals, maintenance handbooks, training handbooks and relevant technical records, technical documentation,
technical data, technical drawings, technical handbooks, technical books, project research and development
records and any other know-how, whether saved in written, electronic or any other media.

Any other assets set forth in the Appraisal Report. The parties hereto agree that where they have
any disagreement on the understanding of the Risk Operation Service Business Assets set forth in
this Schedule, the contents of the Appraisal Report shall prevail.

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Exhibit 2 to Risk Operation Service Business Assets Transfer Agreement with Sichuan

Petroleum Board

Scope of the Risk Operation Service Business Assets

The Risk Operation Service Business Assets shall consist of such subsidiary entities of Party A as
East Sichuan Development Company and Energy Exploration Development Company, including but not
limited to, assets relating to the Risk Operation Service Business and the assets, liabilities and
interests associated therewith, which in particular, include the following assets:

	1.	 	such assets as the buildings and other structures, cash, bank deposits and accounts, inventories,
receivables, machinery and equipment and ancillary devices and facilities owned by Party A
or any entity forming a part of the Risk Operation Service Business;
	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and supplements
thereto) executed by Party A in respect of the Risk Operation Service Business Assets, including
title to buildings and guarantees with respect to such contracts and agreements;
	 
	3.	 	if transferrable in accordance with applicable laws, all the rights under any and all the permits,
licenses, approval certificates, certificates, power of attorney, and any other similar documents
possessed or owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	4.	 	claims, set-off rights or any other similar rights of Party A or any entity forming a part of the
Risk Operation Service Business Assets, in each case, relating to or arising from the Risk Operation Service Business Assets; and
	 
	5.	 	business records, accounting records, operating records, operating data, operating statistical data,
manuals, maintenance handbooks, training handbooks and relevant technical records, technical documentation,
technical data, technical drawings, technical handbooks, technical books, project research and
development records and any other know-how, whether saved in written, electronic or any other media.

Any other assets set forth in the Appraisal Report. The parties hereto agree that where they have
any disagreement on the understanding of the Risk Operation Service Business Assets set forth in
this Schedule, the contents of the Appraisal Report shall prevail.

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Exhibit 2 to Risk Operation Service Business Assets Transfer Agreement with Northern

China Petroleum Board

Scope of the Risk Operation Service Business Assets

The Risk Operation Service Business Assets shall consist of such subsidiary entities of Party A as
Risk Operation Project Department and Well Operation Company, including but not limited to, assets
relating to the Risk Operation Service Business and the assets, liabilities and interests
associated therewith, which in particular, include the following assets:

	1.	 	such assets as the buildings and other structures, cash, bank deposits and accounts, inventories,
receivables, machinery and equipment and ancillary devices and facilities owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and supplements
thereto) executed by Party A in respect of the Risk Operation Service Business Assets, including title to buildings and guarantees with respect to such contracts and agreements;
	 
	3.	 	if transferrable in accordance with applicable laws, all the rights under any and all the permits,
licenses, approval certificates, certificates, power of attorney, and any other similar documents
possessed or owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	4.	 	claims, set-off rights or any other similar rights of Party A or any entity forming a part of the
Risk Operation Service Business Assets, in each case, relating to or arising from the Risk Operation Service Business Assets; and
	 
	5.	 	business records, accounting records, operating records, operating data, operating statistical data,
manuals, maintenance handbooks, training handbooks and relevant technical records, technical documentation,
technical data, technical drawings, technical handbooks, technical books, project research and development
records and any other know-how, whether saved in written, electronic or any other media.

Any other assets set forth in the Appraisal Report. The parties hereto agree that where they have
any disagreement on the understanding of the Risk Operation Service Business Assets set forth in
this Schedule, the contents of the Appraisal Report shall prevail.

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Exhibit 2 to Risk Operation Service Business Assets Transfer Agreement with Dagang

Oilfields Group Company Limited

Scope of the Risk Operation Service Business Assets

The Risk
Operation Service Business Assets shall consist of Party A’s Oil and Gas Co-development
Company (the portion not publicly listed), including but not limited to, assets relating to the
Risk Operation Service Business and the assets, liabilities and interests associated therewith,
which in particular, include the following assets:

	1.	 	such assets as the buildings and other structures, cash, bank deposits and accounts, inventories,
receivables, machinery and equipment and ancillary devices and facilities owned by Party A or
any entity forming a part of the Risk Operation Service Business;
	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and supplements
thereto) executed by Party A in respect of the Risk Operation Service Business Assets, including title to buildings and guarantees with respect to such contracts and agreements;
	 
	3.	 	if transferrable in accordance with applicable laws, all the rights under any and all the permits,
licenses, approval certificates, certificates, power of attorney, and any other similar documents
possessed or owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	4.	 	claims, set-off rights or any other similar rights of Party A or any entity forming a part of the Risk
Operation Service Business Assets, in each case, relating to or arising from the Risk Operation Service Business Assets; and
	 
	5.	 	business records, accounting records, operating records, operating data, operating statistical data,
manuals, maintenance handbooks, training handbooks and relevant technical records, technical documentation,
technical data, technical drawings, technical handbooks, technical books, project research and
development records and any other know-how, whether saved in written, electronic or any other media.

Any other assets set forth in the Appraisal Report. The parties hereto agree that where they have
any disagreement on the understanding of the Risk Operation Service Business Assets set forth in
this Schedule, the contents of the Appraisal Report shall prevail.

18

 

Exhibit 2 to Risk Operation Service Business Assets Transfer Agreement with

Changqing Petroleum Exploration Board

Scope of the Risk Operation Service Business Assets

The Risk Operation Service Business Assets shall consist of Party A’s Low-efficiency Reserve
Co-development Project Group, including but not limited to, assets relating to the Risk Operation
Service Business and the assets, liabilities and interests associated therewith, which in
particular, include the following assets:

	1.	 	such assets as the buildings and other structures, cash, bank deposits and accounts, inventories,
receivables, machinery and equipment and ancillary devices and facilities owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and supplements
thereto) executed by Party A in respect of the Risk Operation Service Business Assets, including title to buildings and guarantees with respect to such contracts and agreements;
	 
	3.	 	if transferrable in accordance with applicable laws, all the rights under any and all the permits,
licenses, approval certificates, certificates, power of attorney, and any other similar documents
possessed or owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	4.	 	claims, set-off rights or any other similar rights of Party A or any entity forming a part of the
Risk Operation Service Business Assets, in each case, relating to or arising from the Risk Operation Service Business Assets; and
	 
	5.	 	business records, accounting records, operating records, operating data, operating statistical data,
manuals, maintenance handbooks, training handbooks and relevant technical records, technical documentation,
technical data, technical drawings, technical handbooks, technical books, project research and development
records and any other know-how, whether saved in written, electronic or any other media.

Any other assets set forth in the Appraisal Report. The parties hereto agree that where they have
any disagreement on the understanding of the Risk Operation Service Business Assets set forth in
this Schedule, the contents of the Appraisal Report shall prevail.

19

 

Exhibit 2 to Risk Operation Service Business Assets Transfer Agreement with Liaohe

Petroleum Exploration Board

Scope of the Risk Operation Service Business Assets

The Risk Operation Service Business Assets shall consist of such subsidiary entities of Party A as
Xinglongtai Engineering Technology Department, Shuguang Engineering Technology Department,
Huanxiling Engineering Technology Department, Ciyutuo Engineering Technology Department, Gaosheng
Engineering Technology Department, Shenyang Engineering Technology Department, Jinzhou Engineering
Technology Department, Oil and Gas Co-development Department, Surrounding Area Exploration Project
Unit, China Huayou Group Corporation, Fuel Gas Business Unit, Oil and Gas Engineering Technology
Department, and Import and Export Company, including but not limited to, assets relating to the
Risk Operation Service Business and the assets, liabilities and interests associated therewith,
which in particular, include the following assets:

	1.	 	such assets as the buildings and other structures, cash, bank deposits and accounts, inventories,
receivables, machinery and equipment and ancillary devices and facilities owned by Party A or
any entity forming a part of the Risk Operation Service Business;
	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and supplements
thereto) executed by Party A in respect of the Risk Operation Service Business Assets, including title to buildings and guarantees with respect to such contracts and agreements;
	 
	3.	 	if transferrable in accordance with applicable laws, all the rights under any and all the permits,
licenses, approval certificates, certificates, power of attorney, and any other similar documents
possessed or owned by Party A or any entity forming a part of the Risk Operation Service Business;
	 
	4.	 	claims, set-off rights or any other similar rights of Party A or any entity forming a part of the Risk
Operation Service Business Assets, in each case, relating to or arising from the Risk Operation Service Business Assets; and
	 
	5.	 	business records, accounting records, operating records, operating data, operating statistical data,
manuals, maintenance handbooks, training handbooks and relevant technical records, technical documentation,
technical data, technical drawings, technical handbooks, technical books, project research and development
records and any other know-how, whether saved in written, electronic or any other media.

Any other assets set forth in the Appraisal Report. The parties hereto agree that where they have
any disagreement on the understanding of the Risk Operation Service Business Assets set forth in
this Schedule, the contents of the Appraisal Report shall prevail.

20EX-4.24

Exhibit 4.24

English Translation of Chinese Original

Equity Transfer Agreement

By and between

China Petroleum Pipeline Bureau

And

PetroChina Kunlun Gas Company Limited

May 15, 2009

 

 

Equity Transfer Agreement

     This Equity Transfer Agreement (this “Agreement”) is entered into this 15th
day of May, 2009 in Beijing by and between China Petroleum Pipeline Bureau (The
“Transferor”), with its business license number being 130000100001893, registered address
being at 87 Guangyang Street, Langfang City, Hebei Province and its legal representative being Zhao
Yujian, and PetroChina Kunlun Gas Company Limited (The “Transferee”), with its business
license number being 110000003132822, registered address being at Dugezhuang Village East, Renhe
Area, Shunyi District, Beijing and its legal representative being Xiang Pingsheng.

     Whereas,

	 	(i)	 	The Transferor is an enterprise the title of which is vested with the whole people
and which was incorporated on April 16, 1973 and validly subsisting under the PRC laws;
	 
	 	(ii)	 	The Transferee is a company limited duly incorporated under the laws of the PRC on
July 27, 2001; and
	 
	 	(iii)	 	The equity exchanges hereunder have been listed on the Equity Exchange Institution
on April 2, 2009. During the period of listing, there was only one interested
transferee, i.e. Kunlun Gas. The Transferor agrees to transfer, and The Transferee
agrees to take delivery of, the Target Equity in the Target Company.

     In accordance with the Company Law of the People’s Republic of China, the Contract Law of the
People’s Republic of China, and other applicable laws and regulations, the Transferor and the
Transferee, after negotiations, hereby reach agreement as follows on the acquisition of the Target
Equity (as defined hereunder) by the Transferee from the Transferor, for mutual observance:

Article 1 Definitions

	 	1.1	 	For the purposes of this Agreement, unless the context otherwise specifies, terms
in this Agreement shall have the meanings set forth below:

	 	 	 
	“Pipeline Bureau”

	 	refers to China Petroleum Pipeline Bureau;
	 
	 	 
	“Kunlun Gas”

	 	refers to PetroChina Kunlun Gas Company Limited;
	 
	 	 
	“Pipeline
Investments Limited
(Target Company)”

	 	refers to China Petroleum Pipeline
Urban Gas Investments Limited;
	 
	 	 
	“Target Equity”

	 	refers to all the targets contemplated to be transferred under
Article 2 of this Agreement;

2

 

	 	 	 
	“The Transfer”

	 	refers to the transfer of the Target Equity by the Transferor to the
Transferee hereunder.
	 
	 	 
	“Valuation Report”

	 	refers to the valuation reports
Zhong Qi Hua Ping Bao Zi (2009) No. 29
issued by China Enterprise Appraisal Co., Ltd. on the assets and
liabilities in connection with the Target Equity as of the Valuation
Date for the purpose of the Transfer contemplated hereunder;
	 
	 	 
	“Open Tender Price”

	 	refers to the open tender price as determined in the Valuation Report;
	 
	 	 
	“Valuation Date”

	 	refers to August 31, 2008;
	 
	 	 
	“Equity Exchange
Institution”

	 	refers to the China Beijing Equity Exchange Institution;
	 
	 	 
	“Completion”

	 	refers to the transfer of the Target Equity in accordance with
Article 5 hereof;
	 
	 	 
	“Completion Date”

	 	refers to the date as determined by the Parties through negotiations
after all the conditions precedent specified in Article 4 hereof have
been satisfied;
	 
	 	 
	“PRC” or “China”

	 	the People’s Republic of China and, for the purpose of this
Agreement, Hong Kong Special Administrative Region, Macao Special
Administrative Region and Taiwan are not included.

Article 2 Target Equity

     The Target Equity refers to 100% equity interest in Pipeline Investments Limited as held by
the Transferor.

Article 3 Consideration for Transfer of Equity

     Based on the results of the open tender, the Transferor will transfer the subject of the
Transfer to the Transferee hereunder at RMB 671,868,000.00 (“Open Tender Prices”),
respectively.

Article 4 Conditions Precedent for Delivery of the Target Equity

	 	 	 	The Completion of the Transfer hereunder shall be conducted on the Completion Date
determined by the parties hereto after all the following conditions of Completion
have been satisfied:
	 
	 	4.1	 	This Agreement has been duly signed by the legal representatives of the Transferor
and the Transferee or their respective authorized representative;

3

 

	 	4.2	 	All necessary consents or approvals in connection with this Agreement and the
Target Equity have been obtained, including without limitation:

	 	(a)	 	The Transferor has obtained approval from its internal
competent authority on the Transfer of the Target Equity;
	 
	 	(b)	 	The Transferee has obtained approval from its internal
competent authorities for its taking delivery of the Equity from the
Transferor;
	 
	 	(c)	 	All necessary consents have obtained by the Transferors from
the creditors and other relevant third parties in respect of the handover of
the Target Equity;
	 
	 	(d)	 	The Valuation Report on which the Transfer consideration is
based has been endorsed by the Transferor and the Transferee, and the filing
procedures have been completed in respect of such valuation.

	 	4.3	 	Open tender and/or bidding process in respect of the Transfer hereunder have been
completed at the Equity Exchange Institution in accordance with the applicable laws and
regulations.
	 
	 	4.4	 	As at the Completion Date, the Transferor’s representations, warranties and
covenants contained herein shall remain true and accurate.

     The parties hereto shall do their utmost to cooperate with each other in a friendly manner
with a view to the satisfaction of the all the conditions precedent set forth above as soon as
practicable, and make all reasonable efforts to procure the completion of the acquisition
contemplated hereunder on or before December 31, 2009.

Article 5 Delivery of the Target Equity

	 	5.1	 	The Transferee shall pay the consideration to the Transfer in full and in Renminbi
to the bank account designated by the Transfer in a lump sum.
	 
	 	5.2	 	The Transferor shall, on the Completion Date, deliver to the Transferee a
contribution certification or a shareholders’ list issued by the Target Company, and
cause and assist with Completion Date to complete the registration for the amendments to
the registration of the Target Equity with the competent industrial and commercial
authority.
	 
	 	5.3	 	The Transferor shall, on the Completion Date, deliver to the Transferee or the
Target Company any and all materials regarding the Target Company in its possession,
including without limitation, the assets list, financial statements or files in
connection with the Target Company.

4

 

	 	5.4	 	As from the Completion Date, the Transferee shall obtain the Target Equity and all
the derivative interest arising therefrom in accordance with the applicable P.R.C. laws
and regulations, and be entitled to and assume the corresponding rights and obligations
specified in the applicable laws, regulations and the articles of association of the
related companies.

Article 6 Representations, Warranties and Covenants of the Transferor

	 	6.1	 	The Transferor is an enterprise the title of which is vested with the whole people
and which was incorporated and validly subsisting under the PRC laws. The Transferor
owns the Target Equity and has the right to transfer the Target Equity in accordance with
this Agreement.
	 
	 	6.2	 	The Transferor guarantees that it has not established, directly or indirectly, any
pledge, third party interest or other restrictions upon the Target Equity.
	 
	 	6.3	 	The execution and performance of this Agreement by the Transferor do not violate
any contracts or agreements which are legally binding upon it.
	 
	 	6.4	 	The execution and performance of this Agreement by the Transferor do not violate
any applicable laws or regulations, or the Transferor’s articles of association or other
constitutional documents.
	 
	 	6.5	 	The Transferor undertakes to actively cooperate actively, and procure its
Affiliated Entities to cooperate with the Transferee to complete any and all legal or
administrative procedures in connection with the Transfer hereunder, including without
limitation, amendments to the registration with the competent industrial and commercial
authorities and amendments.
	 
	 	6.6	 	The Transferor hereby makes the following representations, warranties and covenants
in connection with the Target Company as set out in Article 2.1 hereof:

          (a) The Target Company are incorporated and validly subsisting under the PRC laws and has
independent corporate capacity;

          (b) The Target Company are not in violation of any prevailing PRC laws, regulations and
regulatory documents, and have not received any decision on administrative penalties or judgment or
ruling from any court or arbitral body, which may have material effect on its production and
operation;

          (c) The Target Company are not exposed to any current or potential material litigations,
claims, arbitration, administrative proceedings or other legal proceedings and do not have any
contingent liabilities in any other form. The Target Company have paid in full all the taxes due
on or prior to the execution of this Agreement, and guarantees to pay in full all the taxes due as
from the execution of this Agreement to the Completion of the transaction hereunder;

5

 

          (d) All the financial and operating information in connection with the execution of this
Agreement furnished by the Transferor and the Target Company are true, accurate and complete;

          (e) The Transferor has paid the contribution it subscribed for in connection with the Target
Company.

Article 7 Representations, Warranties and Covenants of the Transferee

	 	7.1	 	The Transferee is a company limited by shares duly organized, validly existing
and in good standing under the laws of the PRC.
	 
	 	7.2	 	The execution and performance of this Agreement by the Transferee do not violate
any contracts or agreements which are legally binding upon the Transferee.
	 
	 	7.3	 	The execution and performance of this Agreement by the Transferee do not violate
any applicable laws or regulations, or the Transferee’s articles of association or other
constitutional documents.

Article 8 Taxation

     The taxation fees (including the expenses incurred in connection with the related equity
exchanges) covered in the Transfer of Equity shall be respectively assumed by the parties hereto in
accordance with the applicable laws and regulations.

Article 9 Event of Default

	 	9.1	 	After this Agreement takes effect, if either party hereto fails to fulfill the
other obligations hereunder in accordance with the provisions hereunder, or any of its
representations or warranties is proved to be false, such party shall be deemed to be in
default. The defaulting party shall keep the non-defaulting party indemnified for any
and all losses the latter suffered as a result of the above defaults.
	 
	 	9.2	 	After this Agreement takes effect, if the Transferor fails to transfer the Target
Equity in accordance with the provisions hereunder, the Transferee shall have the right
to cancel this Agreement. In addition, the Transferor shall be liable for keeping the
Transferee indemnified for the expenses actually incurred and the losses suffered by the
Transferee as a result of the above failure of Transfer, including without limitation,
any and all related expenses incurred in connection with the Transferee’s taking delivery
of the Target Equity.

6

 

Article 10 Confidentiality

     Both parties hereto shall treat any and all details regarding this Agreement and the agreed
Equity Transfer, the relationship between the parties hereto and the documents provided as
confidential information (the “Confidential Information”). Without the prior written
consent of the other party, neither party hereto shall disclose the Confidential Information to any
third party other than the signatories hereof; provided however that, the disclosure as required by
the related intermediaries, regulatory bodies and under the listing requirements of the place of
listing where the Transferee is domiciled for the purpose of this Agreement shall not be subject to
such restrictions. This article of Confidentiality shall remain in effect even if this Agreement
has been completely performed or terminated for any other reasons.

Article 11 Effectiveness, Amendments, Dissolution, Termination and Transfer of This Agreement

     11.1 Effectiveness

     This Agreement shall come into effect upon the execution by the authorized representatives of
the parties hereto on the date set forth at the beginning of this Agreement, and the receipt by the
parties hereto of any and all necessary internal authorizations and approvals for the execution and
performance hereof.

     11.2 Amendments and Dissolution

     After its execution, neither party hereto shall amend or dissolve this Agreement at its own
discretion without the written consent of the other party.

     11.3 Termination

     Upon occurrence of any of the following events, this Agreement shall be terminated prior to
Completion, and the Transferee shall have the right to terminate this Agreement unilaterally
without assuming any liabilities of default:

          (a) The parties hereto agree to terminate this Agreement after conducting consultations;

          (b) The Transferee found any issue which has adverse effect upon the Target Equity or the
Transferee itself;

          (c) Omission, misleading, incompleteness or inaccuracy is found in the representations,
warranties and undertakings of the Transferor.

     11.4 Transfer

     Without the written consent of the other party, neither party hereto shall transfer any of its
rights and/or obligations hereunder to any third parties.

7

 

Article 12 Force Majeure

     If a party has been prevented from performing all or part of its obligations provided in this
Agreement because of an event of Force Majeure, including earthquake, typhoon, flood, fire, war and
any governmental interference, or change of circumstances, it shall immediately notify the other
Party in writing, and shall provide details of the event of Force Majeure or change of
circumstances, as well as valid evidence supporting its inability to perform all or part of its
obligations hereunder or the reasons for the delayed performance, within seven (7) days following
the occurrence of such an event. The parties shall negotiate to terminate this Agreement,
partially release or delay the performance of the affected obligations, according to the influence
of such an event on the performance of this Agreement.

Article 13 Notices

     13.1 Notices required to be given by any party hereto in accordance with this Agreement shall
be in a written form and sent by express delivery, facsimile, electronic mail or telegraph. Any
such notice shall be sent to the other party in accordance with its address, and shall contain
sufficient statements and/or details indicating the major issues in connection with this Agreement.

     The contact information of the parties hereto is as follows:

     The Transferor:

China Petroleum Pipeline Bureau

Address: 87 Guangyang Street, Langfang City, Hebei Province

Contact:

Tel:

     The Transferee:

PetroChina Kunlun Gas Company Limited

Address:

Contact:

Tel:

     13.2 Notices given by way of facsimile, electronic mail or telegraph shall be deemed
effectively given on the date of dispatch; unless the other party furnishes proof to the contrary
evidencing that it has not received any such notice as a matter of fact.

     13.3 Notices given by way of registered mails shall be deemed effectively given three (3)
business days following the dispatch; unless the other party furnishes the proof to the contrary
evidencing that it has not received any such notice as a matter of fact.

8

 

     13.4 If there are changes in the contact information of either party hereto, it shall give the
other party a written notice three (3) days in advance.

Article 14 Governing Law and Dispute Resolution

	 	14.1	 	The execution, effectiveness, performance, interpretation and implementation as
well as any and all issues in connection with this Agreement shall be governed by the
laws of the PRC.
	 
	 	14.2	 	Any dispute arising from, out of or in connection with this Agreement shall be
settled through friendly consultations between the parties.

Article 15 Additional Provisions

	 	15.1	 	Maintenance of Normal Operation and Management

As from the execution of this Agreement to the Completion Date, the parties hereto
agree to maintenance the normal operation and management of the Target Equity. The
Transferor guarantees that the Target Company will not make any substantial adjustments
to or dispose its own personnel issues and Equity, nor will it make any adjustments to
or dispose the target non-equity Equity or the related personnel issues in violation of
the purpose of this Agreement. In the event of any material changes beyond the normal
operational activities, the Transferor shall forthwith notify the Transferee in writing
of such changes.

	 	15.2	 	Decision-making and Handover of Operation and Management

Following the Completion Date, the Transferee shall have the right to recommend candidates
of members of the board of directors and the supervisors’ committee, and to participate
in decision-making, operation and management of the Target Company. The Transferor
shall do its utmost to provide any and all assistance and handover the relevant
materials and documents in its possession.

	 	15.3	 	Disposal Plan regarding the Creditor’s rights and Debts.

Following the Completion of Transfer hereunder, the creditor’s rights, debts and contingent
liabilities of the Target Company shall continue to be assumed by such Target Company.

This Agreement shall be executed in fourteen (14) copies, each of which shall have the same legal
effect. Each party hereto is to hold four (4) copies and the other copies shall be submitted to
the Equity Exchange Institution or the competent authorities for approval or filing purposes.

9

 

Signature page of the Equity Transfer Agreement by and between China Petroleum Pipeline Bureau and
PetroChina Kunlun Gas Company Limited

The Transferor

China Petroleum Pipeline Bureau (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

The Transferee:

PetroChina Kunlun Gas Company Limited (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

10

 

English Translation of Chinese Original

Supplementation

To

The Equity Transfer Agreement

By and between

China Petroleum Pipeline Bureau

And

PetroChina Kunlun Gas Company Limited

May 15, 2009

 

 

Supplementation to

The Equity Transfer Agreement

     This Supplementation to the Equity Transfer Agreement (this “Supplementation
Agreement”) is entered into this 15th day of May, 2009 in Beijing by and between
China Petroleum Pipeline Bureau (The “Transferor”), with its business license number being
130000100001893, registered address being at 87 Guangyang Street, Langfang City, Hebei Province and
its legal representative being Zhao Yujian, and PetroChina Kunlun Gas Company Limited (The
“Transferee”), with its business license number being 110000003132822, registered address
being at Dugezhuang Village East, Renhe Area, Shunyi District, Beijing and its legal
representative being Xiang Pingsheng.

     Whereas, the parties hereto have entered into an Equity Transfer Agreement by and between
China Petroleum Pipeline Bureau and PetroChina Kunlun Gas Company Limited (the “Equity Transfer
Agreement”) dated May 15, 2009, according to which the Transferor agrees to transfer to the
Transferee the 100% equity interest in China Petroleum Pipeline Urban Gas Investments Limited
(“Target Equity”).

     The Transferor and the Transferee, after friendly negotiations, hereby reach agreement as
follows on making supplementations to the Equity Transfer Agreement:

Article 1

     According to the Equity Transfer Agreement, the Transferor will transfer the Target Equity to
the Transferee at a consideration of RMB 671,868,000.00 (the “Open Tender Price”). The
Open Tender Price was established on the basis of the Valuation Report issued by China Enterprise
Appraisal Co., Ltd. on the assets and liabilities in connection with the Target Equity as of the
Valuation Date (August 31, 2008) for the purpose of the Transfer contemplated hereunder. With
respect to the assumption of the profits and losses following the Valuation Date, the parties
hereto engaged Beijing Tianyuan Certified Auditors & Accountants Co., Ltd. to conduct a
supplemented audit on the profits and losses of the Target Companies during the period from the
Valuation Date to the Audit Reference Date (April 30, 2009). The parties hereto agreed and
confirmed that the net profits and losses accrued from the Valuation Date to the Audit Reference
Date corresponding to the Open Tender Prices shall be assumed by the Transferor.

     It was confirmed after the supplemented audit that, the difference between the audited net
assets value as of the Audit Reference Date and that as of the Valuation Date was RMB
12,303,671.94.

     The total consideration which is to be paid for the acquisition of the Target Equity is RMB
684,171,671.94.

Article 2

     The Transferor agrees to pay the difference in the audited net assets value in a lump

- 12 -

 

sum in full to the bank account designated by the Transferee on the Completion Date as agreed
under the Equity Transfer Agreement.

Article 3

     In the event of any inconsistency between this Supplementation Agreement and the Equity
Transfer Agreement, this Supplementation Agreement shall prevail. Other issues not agreed upon
hereunder shall be governed by the Equity Transfer Agreement.

Article 4

     Any amendments and interpretation to this Agreement shall not take effect unless the parties
hereto have reached a supplementation agreement in writing following their consultations with each
other.

Article 5

     This Supplementation Agreement shall be executed in eight (8) copies, each of which shall have
the same legal effect. Each party hereto is to hold four (4) copies.

Article 6

     This Supplementation Agreement shall take effect upon its execution by the authorized
representatives of the parties hereto on the date first written above.

 - 13 - 

 

Signature page of the Supplementation to the Equity Transfer Agreement

The Transferor

China Petroleum Pipeline Bureau (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

The Transferee:

PetroChina Kunlun Gas Company Limited (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

 14 

 

English Translation of Chinese Original

Form
of Equity Transfer Agreement

By and between

China Huayou Group Corporation

And

PetroChina Kunlun Gas Company Limited

May 15, 2009

 15 

 

Equity Transfer Agreement

     This Equity Transfer Agreement (this “Agreement”) is entered into this 15th
day of May, 2009 in Beijing by and between China Huayou Group Corporation (The
“Transferor”), with its business license number being 10000000000237, registered address
being at 6 Liupukang Street, Xicheng District, Beijing and its legal representative being Wang
Wencang, and PetroChina Kunlun Gas Company Limited (The “Transferee”), with its business
license number being 110000003132822, registered address being at Dugezhuang Village East, Renhe
Area, Shunyi District, Beijing and its legal representative being Xiang Pingsheng.

     Whereas,

	 	(i)	 	The Transferor is an enterprise the title of which is vested with the whole people
and which was incorporated on December 10, 1998 and validly subsisting under the PRC
laws;
	 
	 	(ii)	 	The Transferee is a company limited duly incorporated under the laws of the PRC on
July 27, 2001; and
	 
	 	(iii)	 	The equity exchanges hereunder have been listed on the Equity Exchange Institution
on April 2, 2009. During the period of listing, there was only one interested
transferee, i.e. LKunlun Gas. The Transferor agrees to transfer, and The Transferee
agrees to take delivery of, the Target Equity in the Target Company.

     In accordance with the Company Law of the People’s Republic of China, the Contract Law of the
People’s Republic of China, and other applicable laws and regulations, the Transferor and the
Transferee, after negotiations, hereby reach agreement as follows on the acquisition of the Target
Equity (as defined hereunder) by the Transferee from the Transferor, for mutual observance:

Article 1 Definitions

	 	1.1	 	For the purposes of this Agreement, unless the context otherwise specifies, terms
in this Agreement shall have the meanings set forth below:

	 	 	 
	“Huayou Group”

	 	refers to China Huayou Group Corporation;
	 
	 	 
	“Kunlun Gas”

	 	refers to PetroChina Kunlun Gas Company Limited;
	 
	 	 
	“Target Equity”

	 	refers to all the targets contemplated to be transferred under
Article 2 of this Agreement;

 16 

 

	 	 	 
	“Target Companies”

	 	refers to Yongqing Huayou Gas Limited (),
Zhuozhou Huayou Gas Limited (), Bazhou Huayou Gas
Limited (), Changde Huayou Gas Limited
(), Hunan Huayou Gas Distribution Limited
(), Hainan Huayou Ganghua Gas
Limited () and Zoucheng Huayou Gas Limited
();
	 
	 	 
	“The Transfer”

	 	refers to the transfer of the Target Equity by the Transferor to the
Transferee hereunder.
	 
	 	 
	“Valuation Report”

	 	refers to the valuation reports Zhong Qi Hua Ping Bao Zi (2009) No.
031-02, 031-03, 031-04, 031-05, 031-06, 031-07 and 031-08 issued by
China Enterprise Appraisal Co., Ltd. on the assets and liabilities in
connection with the Target Equity as of the Valuation Date for the
purpose of the Transfer contemplated hereunder;
	 
	 	 
	“Open Tender Price”

	 	refers to the open tender price as determined in the Valuation Report;
	 
	 	 
	“Valuation Date”

	 	refers to August 31, 2008;
	 
	 	 
	“Equity Exchange
Institution”

	 	refers to the China Beijing Equity Exchange Institution;
	 
	 	 
	“Completion”

	 	refers to the transfer of the Target Equity in accordance with
Article 5 hereof;
	 
	 	 
	“Completion Date”

	 	refers to the date as determined by the Parties through negotiations
after all the conditions precedent specified in Article 4 hereof have
been satisfied;
	 
	 	 
	“PRC” or “China”

	 	the People’s Republic of China and, for the purpose of this
Agreement, Hong Kong Special Administrative Region, Macao Special
Administrative Region and Taiwan are not included.

Article 2 Target Equity

     The Target Equity refers to 63.11% equity interest in Yongqing Huayou Gas Limited, 89.99%
equity interest in Zhuozhou Huayou Gas Limited, 51% equity interest in Bazhou Huayou Gas Limited,
51% equity interest in Changde Huayou Gas Limited, 43.55% equity interest in Hunan Huayou Gas
Distribution Limited, 51% equity interest in Hainan Huayou Ganghua Gas Limited and 51% equity
interest in Zhoucheng Huayou Gas Limited.

 17 

 

Article 3 Consideration for Transfer of Equity

     Based on the results of the open tender, the Transferor will transfer the subject of the
Transfer to the Transferee hereunder at RMB 15,087,700.00 for Yongqing Huayou Gas Limited, RMB
21,029,500.00 for Zhuozhou Huayou Gas Limited, RMB 133,499,600.00 for Bazhou Huayou Gas Limited,
RMB 138,230,500.00 for Changde Huayou Gas Limited, RMB 66,094,200.00 for Hunan Huayou Gas
Distribution Limited, RMB 26,245,700.00 for Hainan Huayou Ganghua Gas Limited and RMB 8,567,600.00
for Zoucheng Huayou Gas Limited (“Open Tender Prices”), respectively.

Article 4 Conditions Precedent for Delivery of the Target Equity

	 	 	 	The Completion of the Transfer hereunder shall be conducted on the Completion Date
determined by the parties hereto after all the following conditions of Completion
have been satisfied:
	 
	 	4.1	 	This Agreement has been duly signed by the legal representatives of the Transferor
and the Transferee or their respective authorized representative;
	 
	 	4.2	 	All necessary consents or approvals in connection with this Agreement and the
Target Equity have been obtained, including without limitation:

	 	(a)	 	The Transferor has obtained approval from its internal
competent authority on the Transfer of the Target Equity, and has obtained
commitment on the waiver of the pre-emptive rights in connection with the
associated equity from other shareholders (if any);
	 
	 	(b)	 	The Transferee has obtained approval from its internal
competent authorities for its taking delivery of the Equity from the
Transferor;
	 
	 	(c)	 	All necessary consents have obtained by the Transferors from
the creditors and other relevant third parties in respect of the handover of
the Target Equity;
	 
	 	(d)	 	The Valuation Report on which the Transfer consideration is
based has been endorsed by the Transferor and the Transferee, and the filing
procedures have been completed in respect of such valuation.

	 	4.3	 	Open tender and/or bidding process in respect of the Transfer hereunder have been
completed at the Equity Exchange Institution in accordance with the applicable laws and
regulations.
	 
	 	4.4	 	As at the Completion Date, the Transferor’s representations, warranties and
covenants contained herein shall remain true and accurate.

     The parties hereto shall do their utmost to cooperate with each other in a friendly manner
with a view to the satisfaction of the all the conditions precedent set forth above as

 18 

 

soon as practicable, and make all reasonable efforts to procure the completion of the
acquisition contemplated hereunder on or before December 31, 2009.

Article 5 Delivery of the Target Equity

	 	5.1	 	The Transferee shall pay the consideration to the Transfer in full and in Renminbi
to the bank account designated by the Transfer in a lump sum.
	 
	 	5.2	 	The Transferor shall, on the Completion Date, deliver to the Transferee a
contribution certification or a shareholders’ list issued by the Target Companies, and
cause and assist with Completion Date to complete the registration for the amendments to
the registration of the Target Equity with the competent industrial and commercial
authority.
	 
	 	5.3	 	The Transferor shall, on the Completion Date, deliver to the Transferee or the
Target Companies any and all materials regarding the Target Companies in its possession,
including without limitation, the assets list, financial statements or files in
connection with the Target Companies.
	 
	 	5.4	 	As from the Completion Date, the Transferee shall obtain the Target Equity and all
the derivative interest arising therefrom in accordance with the applicable P.R.C. laws
and regulations, and be entitled to and assume the corresponding rights and obligations
specified in the applicable laws, regulations and the articles of association of the
related companies.

Article 6 Representations, Warranties and Covenants of the Transferor

	 	6.1	 	The Transferor is an enterprise the title of which is vested with the whole people
and which was incorporated and validly subsisting under the PRC laws. The Transferor
owns the Target Equity and has the right to transfer the Target Equity in accordance with
this Agreement.
	 
	 	6.2	 	The Transferor guarantees that it has not established, directly or indirectly, any
pledge, third party interest or other restrictions upon the Target Equity.
	 
	 	6.3	 	The execution and performance of this Agreement by the Transferor do not violate
any contracts or agreements which are legally binding upon it.
	 
	 	6.4	 	The execution and performance of this Agreement by the Transferor do not violate
any applicable laws or regulations, or the Transferor’s articles of association or other
constitutional documents.
	 
	 	6.5	 	The Transferor undertakes to actively cooperate actively, and procure its
Affiliated Entities to cooperate with the Transferee to complete any and all legal or
administrative procedures in connection with the Transfer hereunder,

 19 

 

	 	 	 	including without limitation, amendments to the registration with the competent
industrial and commercial authorities and amendments.
	 
	 	6.6	 	The Transferor hereby makes the following representations, warranties and covenants
in connection with the Target Companies as set out in Article 2.1 hereof:

          (a) The Target Companies are incorporated and validly subsisting under the PRC laws and has
independent corporate capacity;

          (b) The Target Companies are not in violation of any prevailing P.R.C. laws, regulations and
regulatory documents, and have not received any decision on administrative penalties or judgment or
ruling from any court or arbitral body, which may have material effect on its production and
operation;

          (c) The Target Companies are not exposed to any current or potential material litigations,
claims, arbitration, administrative proceedings or other legal proceedings and do not have any
contingent liabilities in any other form. The Target Companies have paid in full all the taxes due
on or prior to the execution of this Agreement, and guarantees to pay in full all the taxes due as
from the execution of this Agreement to the Completion of the transaction hereunder;

          (d) All the financial and operating information in connection with the execution of this
Agreement furnished by the Transferor and the Target Companies are true, accurate and complete;

          (e) The Transferor has paid the contribution it subscribed for in connection with the Target
Companies.

Article 7 Representations, Warranties and Covenants of the Transferee

	 	7.1	 	The Transferee is a company limited by shares duly organized, validly existing
and in good standing under the laws of the PRC.
	 
	 	7.2	 	The execution and performance of this Agreement by the Transferee do not violate
any contracts or agreements which are legally binding upon the Transferee.
	 
	 	7.4	 	The execution and performance of this Agreement by the Transferee do not violate
any applicable laws or regulations, or the Transferee’s articles of association or other
constitutional documents.

Article 8 Taxation

     The taxation fees (including the expenses incurred in connection with the related equity
exchanges) covered in the Transfer of Equity shall be respectively assumed by the parties hereto in
accordance with the applicable laws and regulations.

 20 

 

Article 9 Event of Default

	 	9.1	 	After this Agreement takes effect, if either party hereto fails to fulfill the
other obligations hereunder in accordance with the provisions hereunder, or any of its
representations or warranties is proved to be false, such party shall be deemed to be in
default. The defaulting party shall keep the non-defaulting party indemnified for any
and all losses the latter suffered as a result of the above defaults.
	 
	 	9.2	 	After this Agreement takes effect, if the Transferor fails to transfer the Target
Equity in accordance with the provisions hereunder, the Transferee shall have the right
to cancel this Agreement. In addition, the Transferor shall be liable for keeping the
Transferee indemnified for the expenses actually incurred and the losses suffered by the
Transferee as a result of the above failure of Transfer, including without limitation,
any and all related expenses incurred in connection with the Transferee’s taking delivery
of the Target Equity.

Article 10 Confidentiality

     Both parties hereto shall treat any and all details regarding this Agreement and the agreed
Equity Transfer, the relationship between the parties hereto and the documents provided as
confidential information (the “Confidential Information”). Without the prior written
consent of the other party, neither party hereto shall disclose the Confidential Information to any
third party other than the signatories hereof; provided however that, the disclosure as required by
the related intermediaries, regulatory bodies and under the listing requirements of the place of
listing where the Transferee is domiciled for the purpose of this Agreement shall not be subject to
such restrictions. This article of Confidentiality shall remain in effect even if this Agreement
has been completely performed or terminated for any other reasons.

Article 11 Effectiveness, Amendments, Dissolution, Termination and Transfer of This Agreement

     11.1 Effectiveness

     This Agreement shall come into effect upon the execution by the authorized representatives of
the parties hereto on the date set forth at the beginning of this Agreement, and the receipt by the
parties hereto of any and all necessary internal authorizations and approvals for the execution and
performance hereof.

     11.2 Amendments and Dissolution

     After its execution, neither party hereto shall amend or dissolve this Agreement at its own
discretion without the written consent of the other party.

     11.3 Termination

 21 

 

     Upon occurrence of any of the following events, this Agreement shall be terminated prior to
Completion, and the Transferee shall have the right to terminate this Agreement unilaterally
without assuming any liabilities of default:

          (a) The parties hereto agree to terminate this Agreement after conducting consultations;

          (b) The Transferee found any issue which has adverse effect upon the Target Equity or the
Transferee itself;

          (c) Omission, misleading, incompleteness or inaccuracy is found in the representations,
warranties and undertakings of the Transferor.

     11.4 Transfer

     Without the written consent of the other party, neither party hereto shall transfer any of its
rights and/or obligations hereunder to any third parties.

Article 12 Force Majeure

     If a party has been prevented from performing all or part of its obligations provided in this
Agreement because of an event of Force Majeure, including earthquake, typhoon, flood, fire, war and
any governmental interference, or change of circumstances, it shall immediately notify the other
Party in writing, and shall provide details of the event of Force Majeure or change of
circumstances, as well as valid evidence supporting its inability to perform all or part of its
obligations hereunder or the reasons for the delayed performance, within seven (7) days following
the occurrence of such an event. The parties shall negotiate to terminate this Agreement,
partially release or delay the performance of the affected obligations, according to the influence
of such an event on the performance of this Agreement.

Article 13 Notices

     13.1 Notices required to be given by any party hereto in accordance with this Agreement shall
be in a written form and sent by express delivery, facsimile, electronic mail or telegraph. Any
such notice shall be sent to the other party in accordance with its address, and shall contain
sufficient statements and/or details indicating the major issues in connection with this Agreement.

     The contact information of the parties hereto is as follows:

     The Transferor:

China Huayou Group Corporation

Address:

Contact:

Tel:

 22 

 

     The Transferee:

                                                            

Address:

Contact:

Tel:

     13.2 Notices given by way of facsimile, electronic mail or telegraph shall be deemed
effectively given on the date of dispatch; unless the other party furnishes proof to the contrary
evidencing that it has not received any such notice as a matter of fact.

     13.3 Notices given by way of registered mails shall be deemed effectively given [ ] business
days following the dispatch; unless the other party furnishes the proof to the contrary evidencing
that it has not received any such notice as a matter of fact.

     13.4 If there are changes in the contact information of either party hereto, it shall give the
other party a written notice [ ] days in advance.

Article 14 Governing Law and Dispute Resolution

	 	14.1	 	The execution, effectiveness, performance, interpretation and implementation as
well as any and all issues in connection with this Agreement shall be governed by the
laws of the PRC.
	 
	 	14.2	 	Any dispute arising from, out of or in connection with this Agreement shall be
settled through friendly consultations between the parties.

Article 15 Additional Provisions

	 	15.1	 	Maintenance of Normal Operation and Management

As from the execution of this Agreement to the Completion Date, the parties hereto
agree to maintenance the normal operation and management of the Target Equity. The
Transferor guarantees that the Target Companies will not make any substantial
adjustments to or dispose its own personnel issues and Equity, nor will it make any
adjustments to or dispose the target non-equity Equity or the related personnel issues
in violation of the purpose of this Agreement. In the event of any material changes
beyond the normal operational activities, the Transferor shall forthwith notify the
Transferee in writing of such changes.

	 	15.2	 	Decision-making and Handover of Operation and Management

Following the Completion Date, the Transferee shall have the right to recommend candidates
of members of the board of directors and the supervisors’ committee,

 23 

 

and to participate in decision-making, operation and management of the Target
Companies. The Transferor shall do its utmost to provide any and all assistance and
handover the relevant materials and documents in its possession.

	 	15.3	 	Disposal Plan regarding the Creditor’s rights and Debts.

Following the Completion of Transfer hereunder, the creditor’s rights, debts and contingent
liabilities of the Target Companies shall continue to be assumed by such Target
Companies.

This Agreement shall be executed in fourteen (14) copies, each of which shall have the same legal
effect. Each party hereto is to hold four (4) copies and the other copies shall be submitted to
the Equity Exchange Institution or the competent authorities for approval or filing purposes.

 24 

 

Signature page of the Equity Transfer Agreement by and between China Huayou Group Corporation and
PetroChina Kunlun Gas Company Limited

The Transferor

China Huayou Group Corporation (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

The Transferee:

PetroChina Kunlun Gas Company Limited (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

 25 

 

English Translation of Chinese Original

Supplementation

To

The Equity Transfer Agreement

By and between

China Huayou Group Corporation

And

PetroChina Kunlun Gas Company Limited

May 15, 2009

26

 

Supplementation to

The Equity Transfer Agreement

     This Supplementation to the Equity Transfer Agreement (this “Supplementation
Agreement”) is entered into this 15th day of May, 2009 in Beijing by and between
China Huayou Group Corporation (The “Transferor”), with its business license number being
10000000000237, registered address being at 6 Liupukang Street, Xicheng District, Beijing and its
legal representative being Wang Wencang, and PetroChina Kunlun Gas Company Limited (The
“Transferee”), with its business license number being 110000003132822, registered address
being at Dugezhuang Village East, Renhe Area, Shunyi District, Beijing and its legal
representative being Xiang Pingsheng.

     Whereas, the parties hereto have entered into an Equity Transfer Agreement by and between
Huayou Group Corporation and PetroChina Kunlun Gas Company Limited (the “Equity Transfer
Agreement”) dated May 15, 2009, according to which the Transferor agrees to transfer to the
Transferee the target equity as follows (the “Target Equity”):

     63.11% equity interest in Yongqing Huayou Gas Limited (), 89.99% equity
interest in Zhuozhou Huayou Gas Limited (), 51% equity interest in Bazhou
Huayou Gas Limited (), 51% equity interest in Changde Huayou Gas Limited
(), 43.55% equity interest in Hunan Huayou Gas Distribution Limited
(), 51% equity interest in Hainan Huayou Ganghua Gas Limited
() and 51% equity interest in Zoucheng Huayou Gas Limited
().

     The Transferor and the Transferee, after friendly negotiations, hereby reach agreement as
follows on making supplementations to the Equity Transfer Agreement:

Article 1

     According to the Equity Transfer Agreement, the Transferor will transfer the Target Equity to
the Transferee at the following consideration: RMB 15,087,700.00 for Yongqing Huayou Gas Limited,
RMB 21,029,500.00 for Zhuozhou Huayou Gas Limited, RMB 133,499,600.00 for Bazhou Huayou Gas
Limited, RMB 138,230,500.00 for Changde Huayou Gas Limited, RMB 66,094,200.00 for Hunan Huayou Gas
Distribution Limited, RMB 26,245,700.00 for Hainan Huayou Ganghua Gas Limited and RMB 8,567,600.00
for Zoucheng Huayou Gas Limited (the “Open Tender Prices”), respectively. The Open Tender
Prices were established on the basis of the Valuation Report issued by China Enterprise Appraisal
Co., Ltd. on the assets and liabilities in connection with the Target Equity as of the Valuation
Date (August 31, 2008) for the purpose of the Transfer contemplated hereunder. With respect to the
assumption of the profits and losses following the Valuation Date, the parties hereto engaged
Beijing Tianyuan Certified Auditors & Accountants Co., Ltd. to

27

 

conduct a supplemented audit on the profits and losses of the Target Companies during the
period from the Valuation Date to the Audit Reference Date (April 30, 2009). The parties hereto
agreed and confirmed that the net profits and losses accrued from the Valuation Date to the Audit
Reference Date corresponding to the Open Tender Prices shall be assumed by the Transferor.

          It was confirmed after the supplemented audit that, the differences between the audited net
assets value as of the Audit Reference Date and that as of the Valuation Date for each Target
Company (as defined in the Equity Transfer Agreement) were as follows: RMB 1,338,457.08 for
Yongqing Huayou Gas Limited, RMB 2,180,183.19 for Zhuozhou Huayou Gas Limited, RMB -9,659,278.74
for Bazhou Huayou Gas Limited, RMB 13,831,377.27 for Changde Huayou Gas Limited, RMB -9,072,944.91
for Hunan Huayou Gas Distribution Limited, RMB -3,468,451.05 for Hainan Huayou Ganghua Gas Limited
and RMB 5,445,647.26 for Zoucheng Huayou Gas Limited.

          The dividends which are due to be paid by Bazhou Huayou Gas Limited to Huayou Group shall be
implemented in accordance with the board resolutions passed at the seventh meeting of the first
session of the board of directors.

          The total consideration which are to be paid for the acquisition of the Target Equity are as
follows: RMB 16,426,157.08 for Yongqing Huayou Gas Limited, RMB 23,209,683.19 for Zhuozhou Huayou
Gas Limited, RMB 123,840,321.26 for Bazhou Huayou Gas Limited, RMB 152,061,877.27 for Changde
Huayou Gas Limited, RMB 57,021,255.09 for Hunan Huayou Gas Distribution Limited, RMB 22,777,248.95
for Hainan Huayou Ganghua Gas Limited and RMB 14,013,247.26 for Zoucheng Huayou Gas Limited.

Article 2

     The Transferor agrees to pay the decreased net assets amount in terms of net assets as
established during the supplemented audit in a lump sum in full to the bank account designated by
the Transferee within 5 business days after this Supplementation Agreement takes effect.

Article 3

     In the event of any inconsistency between this Supplementation Agreement and the Equity
Transfer Agreement, this Supplementation Agreement shall prevail. Other issues not agreed upon
hereunder shall be governed by the Equity Transfer Agreement.

Article 4

     Any amendments and interpretation to this Agreement shall not take effect unless the parties
hereto have reached a supplementation agreement in writing following their consultations with each
other.

Article 5

     This Supplementation Agreement shall be executed in ten (10) copies, each of which shall have
the same legal effect. Each party hereto is to hold five (5) copies.

Article 6

     This Supplementation Agreement shall take effect upon its execution by the authorized

28

 

representatives of the parties hereto on the date first written above.

29

 

Signature page of the Supplementation Agreement by and between China Huayou Group Corporation and
PetroChina Kunlun Gas Company Limited

The Transferor

China Huayou Group Corporation (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

The Transferee:

PetroChina Kunlun Gas Company Limited (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

30

 

English Translation of Chinese Original

Assets Transfer Agreement

By and between

China Huayou Group Corporation

And

PetroChina Kunlun Gas Limited

May 15, 2009

 

 

Assets Transfer Agreement

     This Assets Transfer Agreement is entered into this 15th day of May, 2009 in Beijing by and
between China Huayou Group Corporation (the “Transferor”), with its business license number being
10000000000237, registered address being at 6 Liupukang Street, Xicheng District, Beijing, and
legal representative being Wang Wencang, and PetroChina Kunlun Gas Limited (the “Transferee”), with
its business license number being 110000003132822, registered address being at Dugezhuang Village
East, Renhe Section, Shunyi District, Beijing and legal representative being Xiang Pingsheng.

     Whereas,

	 	(i)	 	the Transferor is an enterprise owned by the whole people incorporated on December
10, 1998;
	 
	 	(ii)	 	the Transferee is a limited liability company established under the laws of the PRC
on July 27, 2001; and
	 
	 	(iii)	 	the Transferor agrees to transfer to the Transferee, and the Transferee agrees to
acquire from the Transferor, the Target Assets legally owned by the Transferor, subject
to the terms and conditions of this Agreement.

     In accordance with the Contract Law of the People’s Republic of China, the Company Law of the
People’s Republic of China and other applicable laws and regulations, the Transferor and the
Transferee, after friendly negotiations, hereby reach agreement as follows on the acquisition of
the Target Assets by the Transferee from the Transferor, for mutual observance:

Article 1 Definitions

	 	 	 
	“Huayou Group”

	 	refers to China Huayou Group Corporation;
	 
	 	 
	“Kunlun Gas”

	 	Refers to  (PetroChina Kunlun Gas Limited);
	 
	 	 
	“Target Assets”

	 	refers to all the targets in the Transfer as specified in Article 2 hereof;
	 
	 	 
	“Transfer”

	 	refers to the transfer of the Target Assets by the Transferor to the
Transferee hereunder;
	 
	 	 
	“Appraisal Report”

	 	refers to the Assets Appraisal Report (Zhong Qi Hua Ping Bao Zi (2009) No.
031-01) with respect to the assets and liabilities of the Target Assets as
at the Appraisal Reference Date issued by China Enterprise Appraisal Co.,
Ltd. for the purpose of the Transfer;

- 32 -

 

	 	 	 
	“Supplemental Audit”

	 	refers to the audit conducted by Beijing Tianyuanquan Certified Public
Accountants Ltd. for the purposes of the Transfer with respect to the
profit and loss of the target company during the period from the Appraisal
Reference Date to the Audit Reference Date;
	 
	 	 
	“Appraisal
Reference Date”

	 	refers to August 31, 2008;
	 
	 	 
	“Audit Reference
Date”

	 	refers to April 30, 2009;
	 
	 	 
	“Completion”

	 	refers to the conveyance of the Target Assets as contemplated under
Article 5 hereof;
	 
	 	 
	“Completion Date”

	 	refers to the date determined by the parties on which the Completion shall
occur after the satisfaction of all the preconditions to the Completion as
set forth in Article 4 hereof;
	 
	 	 
	“PRC” or “China”

	 	the People’s Republic of China

Article 2 Target Assets

     The Target Assets consist of the city gas business-related assets owned by the Gas Business
Unit of the Transferor and any and all the assets, liabilities and equity associated therewith, as
set forth in detail in Exhibit 1 hereto.

Article 3 Consideration for Transfer of Target Assets

     The parties hereto agree and acknowledge that the consideration for the Transfer of the Target
Assets hereunder shall be RMB 417,600.00 (the “Consideration”), as determined based on the asset
valuation results filed with the State-owned Assets Supervision and Administration Commission or an
authorized branch thereof.

Article 4 Conditions Precedent to Completion

	 	4.1	 	The Completion hereunder shall occur on the Completion Date determined by the
parties hereto after all the following conditions have been satisfied:
	 
	 	4.1.1	 	This Agreement has been duly signed by the legal representative of each of the
Transferor and the Transferee or his/her respective authorized representative;
	 
	 	4.1.2	 	All necessary consents or approvals in connection with this Agreement and the
Target Assets have been obtained, including without limitation:

- 33 -

 

	 	(a)	 	The Transferor has obtained the approval to the Transfer from
its internal governing bodies;
	 
	 	(b)	 	The Transferee has obtained the approval to the Transfer from
its internal governing bodies;
	 
	 	(c)	 	The Transferor has obtained all the required consents to the
Transfer of the city gas business assets from any and all its creditors and any
other relevant third parties;
	 
	 	(d)	 	The valuation report on which the Consideration is based has
been confirmed by the Transferor and the Transferee and have been duly filed
with the SASAC;

	 	4.1.3	 	As at the Completion Date, the Transferor’s representations, warranties and
covenants contained herein shall remain true and accurate.

     4.2. The parties hereto shall use their reasonable efforts to ensure that all the conditions
precedent set forth above will be satisfied as soon as practicable and shall use their reasonable
efforts to procure the Completion will occur on or before 31 December 2009.

Article 5 Completion

	 	5.1	 	The Transferor shall, within a reasonable period, actively procure the fulfillment
of all the Completion conditions specified in Article 4 hereof (other than Section
4.1.2(b)), give a notice to the Transferee in writing requesting Completion to be
conducted and furnish copies of the documents/evidence indicating fulfillment of the
Completion preconditions and the proposed Completion Date.
	 
	 	5.2	 	The Transferee shall issue a letter in writing to the Transferor indicating its
agreement to the Completion within five (5) business days following its receipt of the
notice referred to in Section 5.1, and furnish to the Transferor copies of the
documents/evidencing indicating fulfillment of the Completion preconditions as set forth
in Section 4.1.2(b).
	 
	 	5.3	 	At the Completion Date, the Transferor shall deliver to the Transferee:

5.3.1 city gas business assets, and any and all the certificates, deeds, operating
licenses, and title documents or instruments evidencing that all the interest in the
ownership of and operating rights to the city gas business assets shall be fully
vested in the Transferor;

5.3.2 any and all the required third party consents necessary for the delivery of
the city gas business assets, including but not limited to, consents from relevant
creditors and approvals from relevant governmental authorities.

- 34 -

 

	 	5.4	 	Within five (5) business days following the execution of this Agreement, the
Transferee shall pay the Consideration in a lump sum to the Transferor in full in RMB to
a bank account designated by the Transferee.
	 
	 	5.5	 	As from the Completion Date, the Transferee shall obtain the Target Assets and all
the derivative interest arising therefrom in accordance with the applicable PRC laws, and
shall assume the rights and obligations under applicable laws and regulations and the
articles of association of the relevant companies.

Article 6 Alteration Registration Procedures for Target Assets

     The parties hereto agree to complete the alteration registration for the Target Assets as soon
as practicable after the Completion Date. The Transferor shall be obliged to render its
cooperation in and support to the Transferee’s re-application for the issuance of the certificates
of operating qualification or any other relevant qualifications, certificates or documents in
connection with the relevant assets, and assist the Transferee to complete the registration for the
transfer of the Target Assets as soon as practicable

Article 7 Representations, Warranties and Covenants of the Transferor

	 	7.1	 	The Transferor is an enterprise owned by the whole people duly established and
validly existing under the laws of the PRC. The Transferor legally owns the Target
Assets and has the right to transfer the Target Assets to the Transferee in accordance
with this Agreement.
	 
	 	7.2	 	The Transferor hereby warrants that there does not exist any encumbrance or any
other right restriction directly or indirectly created over the Target Assets, and the
Target Assets are not subject to any material action, claim, arbitration, administrative
procedures or any other contingent liabilities in any other form, whether known or
threatened.
	 
	 	7.3	 	The execution and performance of this Agreement by the Transferor do not violate
any contracts or agreements which are legally binding upon it.
	 
	 	7.4	 	The execution and performance of this Agreement by the Transferor do not violate
any applicable laws or regulations, or the Transferor’s articles of association or other
constitutional documents.
	 
	 	7.5	 	The Transferor hereby warrants that after the Audit Reference Date it will not
dispose of or adjust the Target Assets in a manner not consistent with the purpose of
this Agreement. The Transferor shall promptly notify the Transferee in writing of any
material change to the Target Assets other than in the ordinary course of business.
	 
	 	7.6	 	The Transferor undertakes to actively cooperate actively, and procure its Gas
Business Unit to cooperate with the Transferee to complete any and all legal or
administrative procedures in connection with the Transfer hereunder,

- 35 -

 

	 	 	 	including without limitation, the procedures for assets title transfer registration
or alteration registration.

Article 8 Representations, Warranties and Covenants of the Transferee

	 	8.1	 	The Transferee is a limited liability company duly established and validly
existing under PRC laws.
	 
	 	8.2	 	The execution and performance of this Agreement by the Transferee do not violate
any contracts or agreements which are legally binding upon the Transferee.
	 
	 	8.3	 	The execution and performance of this Agreement by the Transferee do not violate
applicable laws or regulations or its articles of association or any other constitutional
documents.

Article 9 Taxation

     Any and all the taxes and charges imposed in connection with the Transfer shall be solely paid
by the party incurring the same in accordance with applicable laws.

Article 10 Event of Default

	 	11.1	 	After this Agreement takes effect, if either party hereto fails to fulfill the
other obligations hereunder in accordance with the provisions hereunder, or any of its
representations or warranties is proved to be false, such party shall be deemed to be in
default. The defaulting party shall indemnify the non-defaulting party against any and
all the losses suffered by the non-defaulting party as a result of the above defaults.
	 
	 	11.2	 	After this Agreement takes effect, if the Transferor fails to transfer the Target
Assets in accordance with the provisions hereunder, the Transferee shall have the right
to cancel this Agreement. In such case, the Transferor shall indemnify the Transferee
against any and all the losses actually suffered by the Transferee, including without
limitation, any and all related expenses incurred by the Transferee in connection with
the transfer of the Target Assets.

Article 12 Confidentiality

     Both parties hereto shall treat any and all details regarding this Agreement and the agreed
assets Transfer, the relationship between the parties hereto and the documents provided as
confidential information (the “Confidential Information”). Without the prior written
consent of the other party, neither party hereto may disclose the Confidential Information to any
third party, except for any disclosure made to the relevant professional advisors or regulatory
authorities or required by the rules of the stock exchange on which the Transferee is listed. This
Article shall survive the expiration or any termination of this Agreement.

Article 12 Effectiveness, Amendment, Cancellation, Termination and Assignment

	 	12.1	 	Effectiveness

- 36 -

 

     This Agreement shall come into effect upon the execution by the authorized representatives of
both parties hereto on the date first written above.

     12.2 Amendment and Cancellation

     After execution, this Agreement may not be amended or cancelled by either party hereto without
written consent of the other party.

     12.3 Termination

     This Agreement may be terminated prior to Completion, if

          (a) the parties hereto reach an agreement on the termination of this Agreement; or

          (b) the Transferee discovers any issue that has an adverse effect on the Target Assets or the
Transferee itself, or any omission, or misleading, incomplete or inaccurate statement in any of the
representations, warranties or covenants of the Transferor, in such case, the Transferee is
entitled to terminate this Agreement at its sole discretion without any liabilities for breach of
contract.

     12.4 Assignment

     Without written consent of the other party, either party hereto may not assign any of its
rights or obligations hereunder to any third party.

Article 13 Force Majeure

     If either party is rendered unable to perform this Agreement in whole or in part as a result
of the occurrence of an event of force majeure, including an earthquake, typhoon, flood, fire, war
and any governmental interference, or a change of circumstances, it shall immediately notify the
other party hereto in writing, and shall provide details of the event of force majeure or change of
circumstances, as well as valid evidence supporting its inability to perform this Agreement in
whole or in part or the reasons for the delayed performance, within seven (7) days following the
occurrence of such event. The parties shall negotiate whether to terminate this Agreement,
partially release or delay the performance of the affected obligations, according to the degree of
the impact of such event on the performance of this Agreement.

Article 14 Notices

     14.1 Notices required to be given by either party hereto under this Agreement shall be in
written form and given by fax, email, personal delivery or mail. Any such notice shall be sent to
the other party at its contact address, and shall contain sufficient statements and/or details
indicating its subject matter relating to this Agreement.

     The contact information of the parties hereto is as follows:

     The Transferor:

- 37 -

 

China Huayou Group Corporation

Address: 21/F, Celebrity Plaza, 101 Anli Road, Chaoyang District Beijing

Attention: Li Junfeng

Tel: 010-84836864

Fax: 010-84836852

The Transferee:

PetroChina Kunlun Gas Limited

Address: 5/F, Tower C, Grand Place, 5 Huizhong Road, Olympic Sports Center, Chaoyang
District, Beijing

Attention: Hu Yuxiang

Tel: 010-51238263

Fax: 010-51238255

     14.2 Notices given by fax, email or personal delivery shall be deemed effectively given on the
date of dispatch; unless the other party furnishes proof to the contrary evidencing that it has not
received any such notice as a matter of fact.

     14.3 Notices given by registered mail shall be deemed effectively given five (5) business days
following the dispatch; unless the other party furnishes the proof to the contrary evidencing that
it has not received any such notice as a matter of fact.

     14.4 If there are changes in the contact information of either party hereto, it shall give the
other party a written notice five (5) business days in advance.

Article 15 Governing Law and Dispute Resolution

	 	15.1	 	The execution, effectiveness, performance, interpretation and enforcement of this
Agreement as well as any and all issues in connection with this Agreement shall be
governed by the laws of the PRC.
	 
	 	15.2	 	Any dispute arising from, out of or in connection with this Agreement shall be
settled through friendly consultations between the parties hereto.

          This Agreement shall be executed in ten (10) counterparts with equal legal force, with each
party to hold five (5).

- 38 -

 

Signature page of the Assets Transfer Agreement by and between China Huayou Group Corporation and
PetroChina Kunlun Gas Limited

The Transferor

China Huayou Group Corporation (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

The Transferee:

PetroChina Kunlun Gas Company Limited (company seal)

Signed by Legal Representatives or Authorized Representative:                                         

 39 

 

Exhibit 1

Scope of City Gas Business-Related Assets

     The city gas business-related assets to be transferred hereunder consist of the city gas
business-related assets owned by the Gas Business Unit of the Transferor and any and all the
assets, liabilities and equity associated therewith, which specially include

As at August 31, 2008

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Net Value	 
	 	 	 	 	 	 	Date of	 	(in RMB	 
	Description	 	Specifications	 	Quantity	 	Acquisition	 	yuan)	 
	Car
	 	Jetta FV7160	 	1	 	Jan. 2006	 	 	85367.8	 
	Car
	 	Audi A6L2.4AT	 	1	 	Feb. 2003	 	 	93190.82	 
	Notepad computer
	 	SonyPCG-6C3P	 	2	 	Aug. 2004	 	 	537.60	 
	Projector
	 	sony VPL-X71	 	1	 	May 2005	 	 	4972.73	 
	Notepad computer
	 	SONY PCG-6C3P	 	1	 	May 2005	 	 	3389.41	 
	Desktop (Lenovo)
	 	Lenovo E6000	 	2	 	May 2005	 	 	5242.69	 
	DV duplicator, scanner
	 	HPScanjet8200	 	1	 	May 2005	 	 	1808.46	 
	Desktop
	 	HP DC7600	 	4	 	Jun. 2006	 	 	18983.92	 
	Notepad computer
	 	Lenovo 100A	 	1	 	Jun. 2006	 	 	6195.04	 
	HP Pavilion
	 	HP G3218CX	 	2	 	Dec. 2007	 	 	10398.76	 
	Color printer
	 	HP 4700DN	 	1	 	May 2008	 	 	21564.58	 
	Black and white printer
	 	HP 5200	 	1	 	May 2008	 	 	8821.87	 
	Fax machine
	 	Cannon L388	 	1	 	Dec. 2003	 	 	75.23	 
	Digital camera
	 	sonyT1	 	1	 	Aug. 2004	 	 	934.04	 
	Photocopier
	 	e-Studio358	 	1	 	Aug. 2004	 	 	6325.06	 

 40

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