4. Ways of Investment and Cooperation

Sino-foreign Equity Joint Ventures are those enterprises established within Chinese territory by foreign companies, enterprises and other economic organizations or individuals together with Chinese counterparts in accordance with the “Law of the People’s Republic of China on Sino-foreign Equity Joint Ventures”. Investors of joint ventures share profits and risks in proportion to their investment.

Sino-foreign Cooperative Joint Ventures are those enterprises established within Chinese territory by foreign companies, enterprises and other economic organizations or individuals together with Chinese counterparts in accordance with the “Law of the People’s Republic of China on Sino-foreign Cooperative Joint Ventures”. The rights, obligations and share of interests and risks of Chinese and foreign partners either making investment or providing the conditions necessary for the cooperation, shall be stipulated in the signed contract by the parties.

Wholly Foreign-owned Enterprises refer to those that are wholly invested and established within Chinese territory by foreign companies, enterprises and other economic organizations or individuals in accordance with the “Law of The People’s Republic of China on Wholly Foreign-owned Enterprises”.

Foreign investment Stockholding Enterprises refer to the companies set up in accordance with the Company Law of the People's Republic of China, whose capital is divided into shares of equal value and shared by Chinese and foreign shareholders, with foreign investors’ holdings accouting for 25% or more of the registered capital of the stockholding enterprise.

Cooperative Development is a way of investment through which Chinese and foreign companies cooperatively explore and exploit oil resources in accordance with “Regulations of the People’s Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign enterprises” and “Regulations of the People’s Republic of China on the Exploitation of Onshore Petroleum Resources in Cooperation with Foreign enterprises”.

Any aforesaid enterprises established by investors from Hong Kong, Macao and Taiwan are regarded foreign-funded enterprises.