The board of directors of PetroChina Company Limited announced that CNPC, the Company and CNPC Capital entered into a joint venture agreement on 24 June 2021, in relation to the establishment of CNPC Kunlun Capital Co. Ltd. The registered capital is RMB 10 billion. Contribution of CNPC will be RMB 5.1 billion, PetroChina Company Limited will be RMB 2.9 billion and CNPC Capital will be RMB 2.0 billion.

The shareholding CNPC will be 51.0%, PetroChina Company Limited will be 29.0% and CNPC Capital will be 20.0%. The amount of capital contribution of the JV Parties under the JV Agreement are determined after arm's length negotiation among the JV Parties and with reference to the estimated capital requirement of the JV. As of 31 December 2021, each of the JV Parties shall pay 30% of their own subscribed capital; as of 31 December 2022, each of the JV Parties shall pay 30% of their own subscribed capital; and as of 31 December 2023, each of the JV Parties shall pay 40% of their own subscribed capital.

The obligation of each JV Parties for the JV shall be limited to the amount of their respective subscription amount. The JV Parties shall be entitled to enjoy the profit after covering losses and provision of the legal reserves for the JV in proportion to their respective paid-in capital in the JV. The JV Agreement shall become effective upon being signed by the legal representatives or authorized representatives and the official seals of the JV Parties.