Document:

EX-4.1

     

Exhibit 4.1

Year 2009 Performance Contract with Management of PetroChina Company Limited

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	Offeree: Name: ZHOU, Jiping	 	 	Offeror: Name: JIANG, Jiemin	 	 	Term of the Contract: January 1, 2010 to December
     31, 2010	 
	 	Title:

	 	President of
PetroChina Company
 Limited
(“PetroChina”)
	 	 	Title:
	 	Chairman of the
Board of Directors of

PetroChina
	 	 	Date of Execution:January 16, 2010
	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	Indices	 	 	Key Performance	 	 	Weight (%)	 	 	Measurement	 	 	Target	 	 	Actual	 	 	Departments Providing the 	 
	 	 	 	 	Indices (KPI)

	 	 	 	 	 	 	 	 	 	 	 	Performance

	 	 	Numbers

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Profits Indices

	 	 	Rate of return of
the
 invested
capital of

PetroChina (ROIC)
	 	 	35	 	 	 	 	%	 	 	 	 	8.4	 	 	 	 	 	 	Budget Management

Department	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	Net income of

PetroChina (NI)
	 	 	20	 	 	 	 	In 100 million RMB
	 	 	1002	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	Free cash flow of

PetroChina (FCF)
	 	 	15	 	 	 	 	In 100 million RMB
	 	 	-458.6	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Operating Indices

	 	 	Rate of crude oil

reserves replacement
	 	 	10	 	 	 	 	%	 	 	 	 	Oil: 1 

Natural Gas: 3

(Domestic 
model)
	 	 	 	 	 	Planning Department	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	Domestic unit oil
and
 gas lifting
cost
	 	 	5	 	 	 	 	US$/barrel
	 	 	24.18	 	 	 	 	 	 	 	Budget Management Department	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	Cash processing
cost
 for oil
	 	 	5	 	 	 	 	RMB/ton
	 	 	214.0	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	Cash marketing cost
for
 oil
	 	 	5	 	 	 	 	RMB/ton
	 	 	346.45	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	Gap between the
actual
 capital
expenditure and

budget
	 	 	5	 	 	 	 	%	 	 	± 5	 	 	 	 	 	 	 	Planning Department	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

     

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Indices to be Put

under Control	 	 	Safety and

environmental

protection	 	 	employee death
arising from industrial production
 accidents ≤ 0.04%; 

extraordinarily serious safe production accidents = 0; 
and 

extraordinarily serious environmental accidents=0.	 	 	Comprehensive
performance
expressed in marks
to be increased by
5 marks if
achieving the
target for the
relevant index put
under control, and
to be reduced by 5
marks if failing to
achieve the target
for the relevant
index put under
control.

	 	 	Safety and Environment

Protection Department	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Performance review marks of the Offeree should be increased by 5 marks if
PetroChina establishes the all-employee performance review system within 2010,
and on the contrary, performance review marks of the Offeree should be
decreased by 5 marks if PetroChina fails to establish the all-employee
performance review system within 2010

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 

	Signature of Offeree: ZHOU JIping

	 	Signature of Offeror: JIANG JieminEX-4.4

 

Exhibit 4.4

English Translation of Chinese Original

Crude Oil Mutual Supply

Framework Agreement for Year 2010

between

PetroChina Company Limited

and

China Petrochemical Corporation

Beijing

December 2009

 

 

 

Crude Oil Mutual Supply Framework Agreement for Year 2010

               PetroChina Company Limited (“PetroChina”) and China Petrochemical Corporation (“Sinopec”),
following friendly consultations, have reached consensus on mutual supply of crude oil in the year
of 2010 and hereby enter into this Agreement (this “Agreement”).

	I.	 	Quantities and Varieties of Crude Oil to Be Supplied Hereunder

	1.	 	In 2010, PetroChina shall supply Sinopec with 5.41 million tons of domestic onshore
crude oil, including 3.45 million tons of blended oil produced at the Daqing Oil Region
(including replacement crude oil), 0.55 million tons of oil produced at the Jizhong Oil
Region, 1.20 million tons of oil produced at the Changqing Oil Region, 0.20 million tons
of oil produced at the Tarim Basin Oil Region, and 10,000 tons of oil produced at
PetroChina Zhejiang Exploration Company.
	 
	2.	 	In 2010, Sinopec shall supply PetroChina with 1.33 million tons of domestic onshore
crude oil, including 0.60 million (increased to 0.80 million to the extent possible)
tons of oil produced at the Tahe Oil Region, 80,000 tons of oil produced at Yanqi Oil
Region, 0.53 million tons of oil produced at the Shengli Oil Region, 80,000 tons of oil
produced at Inner Mongolia (Baiyinchagan) Oil Region, 5,000 tons of natural gas
condensate produced at Western Sichuan Oil Region of Sinopec Southwest Company, 10,000
tons of oil produced at Baise Oil Region of Sinopec Southwest Company, and 25,000 tons of
oil produced at Bashituo Oil Region of Sinopec Northwest Company.
	 
	3.	 	The parties hereto shall, in principle, make available crude oil of the above
supply and take delivery thereof on an evenly distributed basis. The quarterly mutual
supply of crude oil may be adjusted as necessary by mutual agreement thereon and in light
of the availability of crude oil resources, price and the State’s macro-economic planning
requirements.

	II.	 	Quality of Crude Oil

       Matters with respect to the quality of the crude oil to be supplied hereunder shall be handled
pursuant to applicable provisions of SY7513-88 Technical Conditions of Crude Oil at Wellhead.

	III.	 Quarterly Supply Agreements; Sales and Purchase Contracts on an Enterprise-by-Enterprise Basis

       Quarterly supply agreements shall be entered into by and between PetroChina

1

 

 

Natural Gas & Pipeline Company and the Production and Management Department of Sinopec. After the
quarterly plans have been issued to the respective subsidiaries, PetroChina’s relevant regional
companies (including its oil fields, refineries and pipeline companies) and Sinopec’s relevant
subsidiaries (including its oil fields and refineries) will enter into specific sales and purchase
contracts. The total quantities and varieties of crude oil to be supplied under such contracts
shall be consistent with those specified under the above quarterly supply agreements.

	IV.	 	Price of Crude Oil

     The price of crude oil to be supplied hereunder shall be settled on the basis of the standard
crude oil price published by the National Development and Reform Commission each month and the
crude oil premium mutually agreed between the parties.

	V.	 	Payment Guarantee

     Payment of the price of crude oil to be supplied hereunder shall be made on a timely basis and
pursuant to principles agreed upon by the parties hereto. PetroChina and Sinopec agree to be
guarantors, and to assume joint and several guarantee liabilities for the failure of timely payment
of the price of crude oil and other payments by their respective oil refineries. The payer shall
make timely payments to the payee upon receipt of and pursuant to the payment notice.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	Planning Department, 

PetroChina Company Limited	 	 	 	Production Management Department,

China Petrochemical Corporation
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	    /s/ WU Mei
 

	 	 
	 	By:
	  /s/ YU Renming
 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date: December 30, 2009	 	 	 	Date: December 30, 2009

2EX-4.24

Exhibit 4.24

English Translation of Chinese Original

Asset Transfer Agreement

By and between

PetroChina West Pipeline Company

CNPC West Pipeline Company Limited

Dated June 18, 2009

 

 

Table of Contents

	 	 	 	 	 	 	 

	ARTICLE 1	 	DEFINITIONS
	 	 	2	 
	 	 	 
	 	 	 	 
	ARTICLE 2	 	DELIVERY OF ASSETS
	 	 	3	 
	 	 	 
	 	 	 	 
	ARTICLE 3	 	TRANSFER OF ASSETS
	 	 	3	 
	 	 	 
	 	 	 	 
	ARTICLE 4	 	CLOSING
	 	 	4	 
	 	 	 
	 	 	 	 
	ARTICLE 5	 	CONDITIONS PRECEDENT TO CLOSING
	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE 6	 	POST-EXECUTION OBLIGATIONS OF BOTH PARTIES
	 	 	5	 
	 	 	 
	 	 	 	 
	ARTICLE 7	 	REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTY A
	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE 8	 	REPRESENTATIONS AND WARRANTIES OF PARTY B
	 	 	6	 
	 	 	 
	 	 	 	 
	ARTICLE 9	 	EMPLOYEES
	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE 10	 	ACCESS TO INFORMATION
	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE 11	 	FORCE MAJEURE
	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE 12	 	COMMUNICATIONS
	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE 13	 	GOVERNING LAW AND DISPUTE RESOLUTION
	 	 	8	 
	 	 	 
	 	 	 	 
	ARTICLE 14	 	OTHER PROVISIONS
	 	 	8	 
	 	 	 
	 	 	 	 
	EXHIBIT 1 FURTHER REPRESENTATIONS, WARRANTIES AND COVENANTS OF PARTY A	 	 	10	 
	 	 	 
	 	 	 	 
	EXHIBIT 2 SCOPE OF THE WESTERN PIPELINE ASSETS	 	 	13	 

1

 

This Agreement is entered into by and between the following two parties in Urumqi City on
August 28, 2009:

Party A: CNPC West Pipeline Company Limited

Business License No.: 6500001890309

Registered Address: Room 802, Yintong Building, 11 Diamond City, Urumqi, Xinjiang

Party B: PetroChina West Pipeline Company

Business License No.: 650000149000099

Registered Address: Room 02, Swing B, Floor 3, Digital Harbor Building, 5 Diamond City, South
Beijing Road, Urumqi, Xinjiang

Whereas,

(i)     Party A, a wholly-owned subsidiary of China National Petroleum Corporation (“CNPC”), is a
limited liability company established under the laws of the PRC on October 14, 2004;

(ii)     Party B, a branch of PetroChina Company Limited, is established on September 5, 2008; and

(iii)     Party A has agreed to transfer to Party B, and Party B has agreed to purchase from Party A,
the Western Pipeline Assets (as defined herein below, including the liabilities and owner’s equity
associated therewith), on the terms and conditions of this Agreement.

NOW, THEREFORE, the parties hereby reach agreement as follows:

Article 1          Definitions

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

	 	 	 	 	 	 

	 	“Agreement”

	 	 	shall mean this Asset Transfer Agreement entered
into by and between Party A and Party B on June 18,
2009;	 
	 	 
	 	 	 	 
	 	“Party A”

	 	 	shall mean CNPC West Pipeline Company Limited and
its branches; and unless otherwise specified in the
context, the term “Party A” shall include the assets
and business of Party A;	 
	 	 
	 	 	 	 
	 	“Party B”

	 	 	shall mean PetroChina West Pipeline Company; and
unless otherwise specified in the context, the term
“Party B” shall include the assets and business of
Party B;	 
	 	 
	 	 	 	 
	 	“Western Pipeline Assets”

	 	 	shall mean the assets of CNPC West Pipeline Company
Limited to be transferred hereunder, the scope of
which is as further set forth in Exhibit 2 hereto;	 
	 	 
	 	 	 	 

2

 

	 	 	 	 	 	 

	 	“Closing”

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

	 	 	shall mean the later of June 30, 2009 or the date on
which all the conditions set forth in Article 5 have
been satisfied;	 
	 	 
	 	 	 	 
	 	“Reference Date”

	 	 	shall mean March 31, 2009, the reference date for
the asset appraisal conducted for the purpose of the
transfer contemplated hereunder;	 
	 	 
	 	 	 	 
	 	“Audit Report”

	 	 	shall mean the Audit Report (Tian Yuan Quan Shen Zi
[2009] No. 336) dated June 2, 2009 prepared by
Beijing Tianyuanquan Certified Public Accountants
Ltd. for the purposes of the transfer contemplated
hereunder; and	 
	 	 
	 	 	 	 
	 	“Appraisal Report”

	 	 	shall mean the Assets Appraisal Report (Zhong Lian
Ping Bao Zi(2009) No. 134) dated June 10, 2009
issued by China United Assets 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 terms and conditions of this Agreement, Party A shall deliver to Party
B, and Party B shall, in reliance on the applicable representations, warranties and
covenants of Party A set forth herein, accept from Party A, the Western Pipeline Assets
and all the rights associated therewith at present and in the future.

	 	2.2	 	The Western Pipeline Assets shall be as set forth in Exhibit 2 hereto.

Article 3          Transfer of Assets

	 	 	 	The parties hereto agree that the price for the purchase of the Western Pipeline
Assets hereunder shall be RMB 9,708,150,000(the “Purchase Price”), as

3

 

	 	 	 	 determined
based on the asset appraisal results set forth in the Appraisal Report adopting
March 31, 2009 as the Reference Date prepared by China
United Assets Appraisal Co. Ltd. The Purchase Price, after being adjusted by
reference to the changes in the interest during the period from the Reference Date
and the Closing Date as reflected on the financial statements, shall be paid to
Party A in cash.

Article 4          Closing

	 	4.1	 	Date of Closing

	 
	 	 	 	The closing of the assets transfer contemplated hereunder (the “Closing”)
shall occur on the later of June 30, 2009 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 Western Pipeline Assets and any and all the
certificates, deeds, operating licenses, title documents and any other
instruments (including without limitation, land use right certificates,
certificate of title to buildings, account books, property insurance
policies and receipt of premiums) indicating that all the benefits to
the ownership and operating rights of the Western Pipeline Assets are
obtained by Party B;

	 
	 	(ii)	 	any and all the required third party consents
necessary for the transfer of the Western Pipeline Assets, including
without limitation, consent letters from relevant creditors and
approvals from relevant governmental authorities; and

	 
	 	(iii)	 	any and all the effective contracts, account
books, certificates, records and other documents, including financial
records, that are possessed or controlled by Party A in connection with
the Western Pipeline Assets.

	 	4.2.2	 	permit Party B to take possession of the Western Pipeline Assets.

	 	4.3	 	As from the Closing Date, Party B shall obtain the Western Pipeline Assets and all
the interest accrued thereon. Party B shall become the exclusive owner of the Western
Pipeline Assets and own all the right to operate the Western Pipeline Assets as from the
Closing Date.

	 
	 	4.4	 	Except as otherwise specified herein, any and all the profits, benefits, claims,
liabilities and any other rights and obligations generated by the Western Pipeline Assets
prior to the Closing Date shall be owned and assumed by Party A.

	 
	 	4.5	 	In case Party A fails to fully comply with Section 4.2, Party B may at its own
option, conduct the Closing as practicable, without any prejudice to any

4

 

	 	 	 	remedies
otherwise available to Party B or any of Party B’s rights hereunder.

	 
	 	4.6	 	The Parties agree that after the Closing Date they shall carry out the registration
of the changes relating to the Western Pipeline Assets. Party A shall be obligated to
cooperate with Party B to reapply for the certificates of operation qualifications and
any other relevant qualifications and certificates relating to the Western Pipeline
Assets, and proactively assist Party B to carry out the registration of the relevant
title changes.

Article 5          Conditions Precedent to Closing

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

	 	(a)	 	Party B has completed the due diligence with respect to the
Western Pipeline Assets;

	 
	 	(b)	 	Party A has obtained all the required consents to the transfer
of the Western Pipeline Assets from the creditors and any other relevant third
parties;

	 
	 	(c)	 	there does not occur any material adverse change to the
operation or technical performance of the Western Pipeline Assets; or

	 
	 	(d)	 	as at the Closing Date, all the representations, warranties and
covenants made by Party A herein shall remain true, accurate, complete and
valid.

	 	5.2	 	The parties hereto shall make all reasonable efforts to ensure that the conditions
set forth in Section 5.1 will be fulfilled by June 30, 2009. In case any condition set
forth in Section 5.1 fails to be fulfilled by June 30, 2009 for any reason attributable
to Party A, Party B shall have the right to terminate this Agreement.

	 
	 	5.3	 	The parties hereto agree that in case any regulatory authority of the jurisdiction
in which either party is listed or any PRC relevant governmental authority imposes any
condition for the approval to the transfer of the Western Pipeline Assets, the parties
hereto shall negotiate to make corresponding and appropriate amendments to this Agreement
and any other terms of the transaction based on such conditions. In case such
negotiations fail and the performance of this Agreement will render either Party A or
Party B to violate any PRC laws and/or any listing rules, such party shall have the right
to terminate this Agreement at its own discretion.

Article 6          Post-execution Obligations of Both Parties

	 	6.1	 	Obligations of Party A

	 	6.1.1	 	Party A undertakes to Party B that following the Closing it
will continue to make its best efforts to provide Party B with any and all the
information and assistance in connection with the operation and maintenance of
any Western Pipeline Assets reasonably requested by Party B.

5

 

	 	6.1.2	 	As from the execution of this Agreement, without consent from
Party
B, Party A may not use or disclose or divulge to any third party, any
information relating to any Western Pipeline 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 any
relevant regulatory authority.

	 	6.2	 	Obligations of Party B

	 	6.2.1	 	Upon the consumption of the Closing, Party B shall assume all
the liabilities and other obligations arising from the Western Pipeline Assets.
	 
	 	6.2.2	 	Party B shall be responsible for the implementation of and the
project completion budget for the finishing works of the Western Crude Oil and
Refined Oil Pipeline.

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 Party B executes this Agreement in reliance on the 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 any
Warranties.
	 
	 	7.3	 	Party A hereby further undertakes to indemnify Party B in full against any and all
losses or liabilities, including but not limited to, any diminution of the value of any
Western Pipeline 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 branch of PetroChina Company Limited validly existing under
applicable laws.

	 	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 do not violate any laws
or regulations applicable to it.

6

 

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

Article 9          Employees

          Party A’s contractual employees working for the Western Pipeline Assets shall be transferred
to Party B and Party B may continue to use any other employees of Party A to satisfy its own
business requirements; provided, however, that the employment agreements of such employees shall be
amended in accordance with applicable laws.

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 Western Pipeline Assets, and all books,
title instruments, contracts, records and any other documents regarding the Western Pipeline
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 extension of the term for 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, as necessary,
based on the extent of the effect of such 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 (7) 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:

CNPC West Pipeline Company Limited

Address: Yingbin Building, 666 Middle Beijing Road, Urumqi, Xinjiang,

830013

7

 

Fax: 0991-6996844

If to Party B:

PetroChina West Pipeline Company

Address: Yingbin Building, 666 Middle Beijing Road, Urumqi, Xinjiang,

830013

Fax: 0991-6996844

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 Arbitration Commission at the place
which this Agreement is executed. Such dispute shall be finally settled by arbitration
in accordance with the then effective rules of arbitration of such Arbitration
Commission. An 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 Western Pipeline Assets hereunder according to the applicable
laws.
	 
	 	14.2	 	The invalidity, illegality or unenforceability of any term or 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.

8

 

Party A:

CNPC West Pipeline Company Limited (company seal)

Authorized representative: /s/ [_____]

Party B:

PetroChina West Pipeline Company (company seal)

Authorized representative: /s/ [_____]

9

 

Exhibit 1 Further Representations, Warranties and Covenants of Party A

     
               Party A hereby represents, warrants and undertakes to Party B that unless otherwise agreed
between the parties hereto, as of the Closing Date:

1. Corporate Matters

	1.1	 	Party A is a limited liability company 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 Western Pipeline Assets by Party A to Party B shall be conducted in
accordance with the PRC laws.
	 
	2.2	 	At the Closing Date, all governmental approvals required for the transfer of the Western
Pipeline 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 written or oral 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 do not violate any applicable laws or
regulations.

3. Ownership and Conditions of Assets

	3.1	 	Except as otherwise indicated, none of the Western Pipeline 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 Western Pipeline 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 Western Pipeline Assets, and there does
not exist any requirement requiring that all or any portion of the Western Pipeline Assets
shall be transferred to any third party.

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	3.3	 	The construction and operation of the Western Pipeline Assets have been approved by the
competent PRC authorities and do not violate any PRC law or regulation.

	 
	3.4	 	Party A has been operating the Western Pipeline Assets in compliance with the applicable PRC
laws and regulations.

	 
	3.5	 	The machines, equipments, buildings and other overground and underground structures forming a
part of the Western Pipeline Assets are substantially in a sound status and fit for their
intended purposes.

	 
	3.6	 	There is no dispute with the adjacent property owners or the competent authorities of
state-owned land resources in relation to the demarcation lines or passages of any land,
buildings and other structures forming a part of the Western Pipeline Assets.

	 
	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 that form a part of the Western Pipeline 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 Western Pipeline Assets and are owned by Party A, 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 Western Pipeline Assets after Closing.

	 
	5.	 	Confidential Information
	 
	 	 	Any activity conducted by Party A on the Western Pipeline 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 Western Pipeline Assets, 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) is 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 Western
Pipeline Assets was/will be true and accurate at the time of provision and during the period
from the execution of this Agreement to the Closing Date. In

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	 	 	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 undertakes to indemnify Party B 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 Western Pipeline Assets

The Western Pipeline Assets shall include without limitation, all the assets, liabilities and
interests associated with CNPC West Pipeline Company Limited, 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 any relevant entity of Party A, but excluding any parcels of land that have been obtained
by such entity through administrative allocation;

	 
	2.	 	the rights and obligations under the contracts and agreements (including any amendments and
supplements thereto) executed by Party A in respect of the Western Pipeline Assets, including
title to buildings and guarantees with respect to such contracts and agreements;

	 
	3.	 	if transferrable in accordance with applicable laws, the entire interests under any and all
the permits, licenses, approval certificates, certificates, power of attorney, and any other
similar documents possessed or owned by any relevant entity of Party A;

	 
	4.	 	rights to claim, set-off rights or any other similar rights of any relevant entity of Party A
against any third party, in each case, relating to or arising from the Western Pipeline
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 possessed by
Party A in connection with Western Pipeline Assets, 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 Western Pipeline Assets set forth in this Schedule,
the contents of the Appraisal Report shall prevail.

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