At an extraordinary general meeting of shareholders, proposals related to continuous related-party transactions and revisions on caps of annual related-party transactions for the last three years ending 31 Dec 2008 as well as subsequent years, were examined and approved. The company plans to maintain its continuous related-party transactions in the coming years.

In October 2007, the company issued A-shares in its IPO and was listed on the Shanghai Stock Exchange. On 27 Aug 2008, the company signed a new three-year general agreement with China National Petroleum Group Co., Ltd. (CNPC), the controlling shareholder of the company, on products and services included in the related-party transactions, effective from 2009.

Pursuant to the agreement, transactions between the company (and its affiliates) and CNPC as well as transactions between the company (and its affiliates) and a subsidiary of the company and CNPC, the annual cap for 2008 related-party transactions has been revised to RMB 71.29 bln, while the annual caps for 2009, 2010 and 2011 has been revised to RMB 96.32 bln, RMB 156.44 bln and RMB 167.98 bln respectively.

Board of Directors
28 Aug 2008


Source: Shanghai Stock Exchange

Date: 28 Aug 2008

CN01/VW/DM/BT/KM