NOTES TO THE FINANCIAL STATEMENTS
(All amounts in millions, except for the per share data and otherwise stated)
1
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ORGANISATION AND PRINCIPAL ACTIVITIES
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PetroChina Company Limited (the
Company) was established as a joint stock company with limited liability on November 5, 1999 by China National Petroleum Corporation (CNPC) as the sole proprietor in accordance with the approval Guo Jing Mao Qi Gai [1999] No.
1024 Reply on the approval of the establishment of PetroChina Company Limited from the former State Economic and Trade Commission of the Peoples Republic of China (China or PRC). CNPC restructured (the
Restructuring) and injected its core business and the related assets and liabilities into the Company. CNPC is a wholly state-owned company registered in China. The Company and its subsidiaries are collectively referred to as the
Group.
The Group is principally engaged in (i) the exploration, development and production and marketing of crude oil and
natural gas; (ii) the refining of crude oil and petroleum products, production and marketing of primary petrochemical products, derivative petrochemical products and other chemical products; (iii) the marketing of refined products and trading
business; and (iv) the transmission of natural gas, crude oil and refined products and the sale of natural gas (Note 37).
The consolidated financial statements have been prepared in
accordance with the International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared under the historical cost
convention except as disclosed in the accounting policies below.
The preparation of financial statements in conformity with IFRS requires
the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial position and the reported amounts of revenues and expenses
during the reporting period. Although these estimates are based on managements best knowledge of current events and actions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgment or
complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
3
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SUMMARY OF PRINCIPAL ACCOUNTING POLICIES
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(a) Basis of consolidation
Subsidiaries are entities controlled by the Group. The group controls an entity when it is exposed to, or has right to, variable returns from
its involvement with the entity and has the ability to affect those returns through its power over the entity.
A subsidiary is
consolidated from the date on which control is transferred to the Group and is no longer consolidated from the date that control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries except for business
combinations under common control. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred
includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair values at the acquisition date. On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interests in the acquiree either at fair value or at the non-controlling
interests proportionate share of the acquirees net assets.
F-8
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
The excess of the consideration transferred, the amount of any
non-controlling interests in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets is recorded as goodwill. If this is less than the fair value of the net
assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in the statement of comprehensive income.
An acquisition of a business which is a business combination under common control is accounted for in a manner similar to a uniting of
interests whereby the assets and liabilities acquired are accounted for at carryover predecessor values to the other party to the business combination with all periods presented as if the operations of the Group and the business acquired have always
been combined. The difference between the consideration paid by the Group and the net assets or liabilities of the business acquired is adjusted against equity.
Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also
eliminated. Where necessary, accounting policies of subsidiaries have been changed to ensure consistency with the policies adopted by the Group.
A listing of the Groups principal subsidiaries is set out in Note 18.
(b) Investments in associates
Associates are entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20%
and 50% of the voting rights. Investments in associates are accounted for by the equity method of accounting in the consolidated financial statements of the Group and are initially recognized at cost.
Under this method of accounting, the Groups share of the post-acquisition profits or losses of associates is recognized in the
consolidated profit or loss and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying amounts of the
investments. When the Groups share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred obligations or made
payments on behalf of the associate.
Unrealized gains on transactions between the Group and its associates are eliminated to the extent
of the Groups interest in the associates; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. The Groups investment in associates includes goodwill identified on
acquisition, net of any accumulated loss and is tested for impairment as part of the overall balance. Goodwill represents the excess of the cost of an acquisition over the fair value of the Groups share of the net identifiable assets of the
acquired associate at the date of acquisition. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.
A listing of the Groups principal associates is shown in Note 16.
(c) Investments in joint ventures
Ventures are arrangements in which the Group with one or more parties have joint control, whereby the Group has rights to the net assets of the
arrangements, rather than rights to their assets and obligations for their liabilities. The Groups interests in joint ventures are accounted for by the equity method of accounting (Note 3(b)) in the consolidated financial statements.
A listing of the Groups principal joint ventures is shown in Note 16.
F-9
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(d) Transactions with non-controlling interests
Transactions with non-controlling interests are treated as transactions with owners in their capacity as owners of the Group. Gains and losses
resulting from disposals to non-controlling interests are recorded in equity. The differences between any consideration paid and the relevant share of the carrying value of net assets of the subsidiary acquired resulting from the purchase of
non-controlling interests, are recorded in equity.
When the Group ceases to have control or significant influence, any retained interest
in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate,
joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that
amounts previously recognized in other comprehensive income are reclassified to profit or loss.
If the ownership interest in an associate
is reduced but significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate.
(e) Foreign currencies
Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in
which the entity operates (the functional currency). Most assets and operations of the Group are located in the PRC (Note 37), and the functional currency of the Company and most of the consolidated subsidiaries is the Renminbi
(RMB). The consolidated financial statements are presented in the presentation currency of RMB.
Foreign currency transactions
of the Group are accounted for at the exchange rates prevailing at the respective dates of the transactions; monetary assets and liabilities denominated in foreign currencies are translated at exchange rates at the date of the statement of financial
position; gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are recognized in the consolidated profit or loss.
For the Group entities that have a functional currency different from the Groups presentation currency, assets and liabilities for each
statement of financial position presented are translated at the closing rate at the date of the statement of financial position. Income and expenses for each statement of comprehensive income presented are translated at the average exchange rates
for each period and the resulting exchange differences are recognized in other comprehensive income.
(f) Property, plant and
equipment
Property, plant and equipment, including oil and gas properties (Note 3(g)), are initially recorded in the consolidated
statement of financial position at cost where it is probable that they will generate future economic benefits. Cost represents the purchase price of the asset and other costs incurred to bring the asset into existing use. Subsequent to their initial
recognition, property, plant and equipment are carried at cost less accumulated depreciation, depletion and amortization (including any impairment).
Depreciation, to write off the cost of each asset, other than oil and gas properties (Note 3(g)), to their residual values over their
estimated useful lives is calculated using the straight-line method.
F-10
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
The Group uses the following useful lives for depreciation purposes:
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Buildings
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8 - 40 years
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Equipment and Machinery
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4 - 30 years
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Motor vehicles
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4 - 14 years
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Other
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5 - 12 years
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No depreciation is provided on construction in progress until the assets are completed and ready for use.
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Property, plant and equipment, including oil and gas properties (Note 3(g)), are reviewed for possible impairment when events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of a cash generating unit exceeds the higher of its fair value less costs to sell and its value in
use. Value in use is the estimated net present value of future cash flows to be derived from the cash generating unit.
Gains and losses
on disposals of property, plant and equipment are determined by reference to their carrying amounts and are recorded in the consolidated profit or loss.
Interest and other costs on borrowings to finance the construction of property, plant and equipment are capitalized during the period of time
that is required to complete and prepare the asset for its intended use. Costs for repairs and maintenance activities are expensed as incurred except for costs of components that result in improvements or betterments which are capitalized as part of
property, plant and equipment and depreciated over their useful lives.
(g) Oil and gas properties
The successful efforts method of accounting is used for oil and gas exploration and production activities. Under this method, all costs for
development wells, support equipment and facilities, and proved mineral interests in oil and gas properties are capitalized. Geological and geophysical costs are expensed when incurred. Costs of exploratory wells are capitalized pending
determination of whether the wells find proved oil and gas reserves. Proved oil and gas reserves are the estimated quantities of crude oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable
certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire,
unless evidence indicates that renewal is reasonably certain, regardless of whether the estimate is a deterministic estimate or probabilistic estimate. Existing economic conditions include prices and costs at which economic producibility from a
reservoir is to be determined. The price shall be the average price during the 12-month period before the ending date of the period covered by the proved oil and gas reserve report, determined as an unweighted arithmetic average of the
first-day-of-the-month price for each month within such period unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. The costs shall be that prevailing at the end of the period.
Exploratory wells in areas not requiring major capital expenditures are evaluated for economic viability within one year of completion of
drilling. The related well costs are expensed as dry holes if it is determined that such economic viability is not attained. Otherwise, the related well costs are reclassified to oil and gas properties
F-11
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
and are subject to impairment review (Note 3(f)). For exploratory wells that are found
to have economically viable reserves in areas where major capital expenditure will be required before production can commence, the related well costs remain capitalized only if additional drilling is underway or firmly planned. Otherwise the related
well costs are expensed as dry holes. The Group does not have any significant costs of unproved properties capitalized in oil and gas properties.
The Ministry of Land and Resources in China issues production licenses to applicants on the basis of the reserve reports approved by relevant
authorities.
The cost of oil and gas properties is amortized at the field level based on the units of production method. Units of
production rates are based on oil and gas reserves estimated to be recoverable from existing facilities based on the current terms of the Groups production licenses.
(h) Intangible assets and goodwill
Expenditures on acquired patents, trademarks, technical know-how and licenses are capitalized at historical cost and amortized using the
straight-line method over their estimated useful lives. Intangible assets are not subsequently revalued. The carrying amount of each intangible asset is reviewed annually and adjusted for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount and is recognized in the consolidated profit or loss. The recoverable amount is
measured as the higher of fair value less costs to sell and value in use. Value in use is the estimated net present value of future cash flows to be derived from the asset.
Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of the consideration transferred
over the interest in net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquiree and the amount of any non-controlling interests in the acquiree.
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment.
The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognized immediately as an expense and is not subsequently reversed.
(i) Financial assets
Financial assets are classified into the following categories: financial assets at fair value through profit or loss, held-to-maturity
investments, loans and receivables and available-for-sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial
recognition. The Group has principally loans and receivables and available-for-sale financial assets and limited financial assets at fair value through profit or loss. The detailed accounting policies for loans and receivables, available-for-sale
financial assets and financial assets at fair value through profit or loss held by the Group are set out below.
Classification
(i) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are
included in current assets, except for those with maturities greater than
F-12
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
12 months after the date of the statement of financial position, which are
classified as non-current assets. The Groups loans and receivables comprise accounts receivable, notes receivable and other receivables. The recognition methods for loans and receivables are disclosed in the respective policy notes.
(ii) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other
categories; these are included in non-current assets unless management intends to dispose of the investment within 12 months of the date of the statement of financial position. The Groups available-for-sale financial assets primarily comprise
unquoted equity instruments.
(iii) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category
if acquired principally for the purpose of selling in the short term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled
within 12 months; otherwise, they are classified as non-current.
Recognition and measurement
Regular purchases and sales of financial assets are recognized on the trade-date, the date on which the Group commits to purchase or sell the
asset. Investments are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at
fair value, and transaction costs are expensed in the income statement. Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially
all risks and rewards of ownership.
Available-for-sale financial assets are measured at fair value except where there are no quoted
market prices in active markets and the fair values cannot be reliably measured using valuation techniques. Available-for-sale financial assets that do not have quoted market prices in active markets and whose fair value cannot be reliably measured
are carried at cost. Changes in the fair value of monetary and non-monetary securities classified as available for sale are recognized in other comprehensive income. Financial assets at fair value through profit or loss are subsequently carried at
fair value. Gains or losses arising from changes in the fair value of the financial assets at fair value through profit or loss category are presented in the income statement within other income / (expenses), net in the
period in which they arise.
The Group assesses at the end of each reporting period whether there is objective evidence that a financial
asset is impaired. The amount of the impairment loss is measured as the difference between the carrying amount of the available-for-sale financial asset and the present value of the estimated cash flows.
(j) Leases
Leases
of property, plant and equipment where the Group assumes substantially all the benefits and risks of ownership are classified as finance leases. The Group has no significant finance leases.
Leases of assets under which a significant portion of the risks and benefits of ownership are effectively retained by the lessors are
classified as operating leases. Payments made under operating leases (net of any
F-13
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
incentives received from the lessors) are expensed on a straight-line basis over the
lease terms. Payments made to the PRCs land authorities to secure land use rights (excluding mineral properties) are treated as operating leases. Land use rights are generally obtained through advance lump-sum payments and the terms of use
range up to 50 years.
(k) Inventories
Inventories include oil products, chemical products and materials and supplies which are stated at the lower of cost and net realizable value.
Cost is primarily determined by the weighted average cost method. The cost of finished goods comprises raw materials, direct labor, other direct costs and related production overheads, but excludes borrowing costs. Net realizable value is the
estimated selling price in the ordinary course of business, less the cost of completion and selling expenses.
(l) Accounts
receivable
Accounts receivable are recognized initially at fair value and subsequently measured at amortized cost using the
effective interest method, less provision made for impairment of these receivables. Such provision for impairment is established if there is objective evidence that the Group will not be able to collect amounts due according to the original terms of
the receivables. The factors the Group considers when assessing whether an account receivable is impaired include but are not limited to significant financial difficulties of the customer, probability that the debtor will enter bankruptcy or
financial reorganization and default or delinquency in payments. The amount of the provision is the difference between the assets carrying amount and the present value of estimated future cash flows, discounted at the original effective
interest rate.
(m) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, deposits held with banks and highly liquid investments with original maturities of three
months or less from the time of purchase.
(n) Accounts payable
Accounts payable are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
(o) Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. In subsequent periods, borrowings are stated at amortized
cost using the effective interest method. Any difference between proceeds (net of transaction costs) and the redemption value is recognized in the consolidated profit or loss over the period of the borrowings.
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
F-14
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Borrowings are classified as current liabilities unless the Group has
unconditional rights to defer settlements of the liabilities for at least 12 months after the reporting period.
(p) Taxation
Deferred tax is provided in full, using the liability method, for temporary differences arising between the tax bases of assets
and liabilities and their carrying values in the financial statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates that have been enacted or substantively enacted by the date of the statement of financial position and are expected to apply to the
period when the related deferred tax asset is realized or deferred tax liability is settled.
The principal temporary differences arise
from depreciation on oil and gas properties and equipment and provision for impairment of receivables, inventories, investments and property, plant and equipment. Deferred tax assets relating to the carry forward of unused tax losses are recognized
to the extent that it is probable that future taxable income will be available against which the unused tax losses can be utilized.
The
Group also incurs various other taxes and levies that are not income taxes. Taxes other than income taxes, which form part of operating expenses, primarily comprise a crude oil special gain levy (Note 9), consumption tax (Note 9),
resource tax (Note 9), urban construction tax, education surcharges and business tax.
(q) Revenue recognition
Sales are recognized upon delivery of products and customer acceptance or performance of services, net of value added taxes and discounts.
Revenues are recognized only when the Group has transferred to the buyer the significant risks and rewards of ownership of the goods in the ordinary course of the Groups activities, and when the amount of revenue and the costs incurred or to
be incurred in respect of the transaction can be measured reliably and collectability of the related receivables is reasonably assured.
The Group markets a portion of its natural gas under take-or-pay contracts. Customers under the take-or-pay contracts are required to take or
pay for the minimum natural gas deliveries specified in the contract clauses. Revenue recognition for natural gas sales and transmission tariff under the take-or-pay contracts follows the accounting policies described in this note. Payments received
from customers for natural gas not yet taken are recorded as deferred revenues until actual deliveries take place.
(r) Provisions
Provisions are recognized when the Group has present legal or constructive obligations as a result of past events, it is probable
that an outflow of resources will be required to settle the obligations, and reliable estimates of the amounts can be made.
Provision for
future decommissioning and restoration is recognized in full on the installation of oil and gas properties. The amount recognized is the present value of the estimated future expenditure determined in accordance with local conditions and
requirements. A corresponding addition to the related oil and gas properties of an amount equivalent to the provision is also created. This is subsequently depreciated as part of the costs of the oil and gas properties. Any change in the present
value of the estimated expenditure other than due to passage of time which is regarded as interest expense, is reflected as an adjustment to the provision and oil and gas properties.
F-15
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(s) Research and development
Research expenditure incurred is recognized as an expense. Costs incurred on development projects are recognized as intangible assets to the
extent that such expenditure is expected to generate future economic benefits.
(t) Retirement benefit plans
The Group contributes to various employee retirement benefit plans organized by PRC municipal and provincial governments under which it is
required to make monthly contributions to these plans at prescribed rates for its employees in China. The relevant PRC municipal and provincial governments undertake to assume the retirement benefit obligations of existing and future retired
employees of the Group in China. The Group has similar retirement benefit plans for its employees in its overseas operations. Contributions to these PRC and overseas plans (defined contribution plan) are charged to expense as incurred.
In addition, the Group joined the corporate annuity plan approved by relevant PRC authorities. Contribution to the annuity plan is charged to expense as incurred. The Group currently has no additional material obligations outstanding for the payment
of retirement and other post-retirement benefits of employees in the PRC or overseas other than what described above.
(u) Related
Parties
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(a)
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A person, or a close member of that persons family, is related to the Group if that person:
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(i)
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has control or joint control over the Group;
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(ii)
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has significant influence over the Group; or
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(iii)
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is a member of the key management personnel of the Group or the Groups parent.
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(b)
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An entity is related to the Group if any of the following conditions applies:
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(i)
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The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
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(ii)
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One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
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(iii)
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Both entities are joint ventures of the same third party.
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(iv)
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One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
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(v)
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The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group.
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(vi)
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The entity is controlled or jointly controlled by a person identified in (a).
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(vii)
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A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).
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(viii)
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The entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the Groups parent.
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Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their
dealings with the entity.
F-16
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(v) New accounting developments
(i) New and amended standards adopted by the Group
There are no IFRSs or IFRIC interpretations that are effective for the first time for the financial year beginning on or after January 1, 2015
that would be expected to have a material impact on the Group.
(ii) Standards, amendments and interpretations to existing standards that
are not yet effective and have not been early adopted by the Group
IFRS 9
Financial Instruments
(IFRS 9), published in
July 2014, replaces the existing guidance in IAS 39
Financial Instruments:
Recognition and Measurement.
IFRS 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model
for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39.
IFRS 9 is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption permitted. The adoption of this
standard is expected to have an impact on the Groups financial assets, but no impact on the Groups financial liabilities.
IFRS 15
Revenue from contracts with customers
(IFRS15) establishes a comprehensive framework for determining whether, how
much and when revenue is recognized. It replaces existing revenue recognition guidance, including IAS 18
Revenue
, IAS 11
Construction Contracts
and IFRIC 13
Customer Loyalty Programs
.
IFRS 15 is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption permitted. The Group is assessing
the potential impact on its consolidated financial statements.
4
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FINANCIAL RISK AND CAPITAL MANAGEMENT
|
4.1 Financial risk factors
The Groups activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.
(a) Market risk
Market risk is the possibility that changes in foreign exchange rates, interest rates and the prices of oil and gas products will adversely
affect the value of assets, liabilities and expected future cash flows.
(i) Foreign exchange risk
The Group conducts its domestic business primarily in RMB, but maintains a portion of its assets in other currencies to pay for imported crude
oil, imported equipment and other materials and to meet foreign currency financial liabilities. The Group is exposed to currency risks arising from fluctuations in various foreign currency exchange rates against the RMB. The RMB is not a freely
convertible currency and is regulated by the PRC government. Limitations on foreign exchange transactions imposed by the PRC government could cause future exchange rates to vary significantly from current or historical exchange rates.
F-17
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Additionally, the Group operates internationally and foreign exchange
risk arises from future acquisitions and commercial transactions, recognized assets and liabilities and net investments in foreign operations. Certain entities in the Group might use currency derivatives to manage such foreign exchange risk.
(ii) Interest rate risk
The Group has no significant interest rate risk on interest-bearing assets. The Groups exposure to interest rate risk arises from its
borrowings. The Groups borrowings at floating rates expose the Group to cash flow interest rate risk and its borrowings at fixed rates expose the Group to fair value interest rate risk. However, the exposure to interest rate risk is not
material to the Group. A detailed analysis of the Groups borrowings, together with their respective interest rates and maturity dates, is included in Note 27.
(iii) Price risk
The Group is engaged in a wide range of oil and gas products-related activities. Prices of oil and gas products are affected by a wide range of
global and domestic factors which are beyond the control of the Group. The fluctuations in such prices may have favorable or unfavorable impacts on the Group. The Group did not enter into any material hedging of its price risk during the year.
(b) Credit risk
Credit risk arises from cash and cash equivalents, time deposits with banks and credit exposure to customers with outstanding receivable
balances.
A substantial portion of the Groups cash at bank and time deposits are placed with the major state-owned banks and
financial institutions in China and management believes that the credit risk is low.
The Group performs ongoing assessment of the credit
quality of its customers and sets appropriate credit limits taking into account the financial position and past history of defaults of customers. The Groups accounts receivable balances over 3 years have been substantially provided for and
accounts receivable balances within one year are generally neither past due nor impaired. The aging analysis of accounts receivable (net of impairment of accounts receivable) is presented in Note 22. The Groups accounts receivable balances
that are neither past due nor impaired are with customers with no recent history of default.
The carrying amounts of cash and cash
equivalents, time deposits placed with banks, accounts receivable, other receivables and notes receivable included in the consolidated statement of financial position represent the Groups maximum exposure to credit risk. No other financial
assets carry a significant exposure to credit risk.
The Group has no significant concentration of credit risk.
(c) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities.
In managing its liquidity risk, the Group has access to funding at market rates through equity and debt markets, including using undrawn
committed borrowing facilities to meet foreseeable borrowing requirements.
F-18
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Given the low level of gearing and continued access to funding, the
Group believes that its liquidity risk is not material.
Analysis of the Groups financial liabilities based on the remaining period
at the date of the statement of financial position to the contractual maturity dates are presented in Note 27.
4.2 Capital
management
The Groups objectives when managing capital are to safeguard its ability to continue as a going concern, optimize
returns for owners and to minimize its cost of capital. In meeting its objectives of managing capital, the Group may issue new shares, adjust its debt levels or the mix between short-term and long-term borrowings.
The Group monitors capital on the basis of the gearing ratio which is calculated as interest-bearing borrowings / (interest-bearing borrowings
+ total equity). The gearing ratio at December 31, 2015 is 28.7% (December 31, 2014: 29.0 %).
4.3 Fair value estimation
The methods and assumptions applied in determining the fair value of each class of financial assets and financial liabilities of
the Group at December 31, 2015 and 2014 are disclosed in the respective accounting policies.
The carrying amounts of the following
financial assets and financial liabilities approximate their fair value as all of them are short-term in nature: cash and cash equivalents, time deposits with maturities over three months but within one year, accounts receivable, other receivables,
trade payables, other payables and short-term borrowings. The fair values of fixed rate long-term borrowings are likely to be different from their respective carrying amounts. Analysis of the fair values and carrying amounts of long-term borrowings
are presented in Note 27.
5
|
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
|
Estimates and judgments are regularly
evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The matters described below are considered to be the most critical in understanding the estimates and judgments that are involved in preparing
the Groups consolidated financial statements.
(a) Estimation of oil and natural gas reserves
Estimates of oil and natural gas reserves are key elements in the Groups investment decision-making process. They are also an important
element in testing for impairment. Changes in proved oil and natural gas reserves, particularly proved developed reserves, will affect unit-of-production depreciation, depletion and amortization recorded in the Groups consolidated financial
statements for property, plant and equipment related to oil and gas production activities. A reduction in proved developed reserves will increase depreciation, depletion and amortization charges. Proved reserve estimates are subject to revision,
either upward or downward, based on new information, such as from development drilling and production activities or from changes in economic factors, including product prices, contract terms, evolution of technology or development plans, etc.
F-19
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(b) Estimation of impairment of property, plant and equipment
Property, plant and equipment, including oil and gas properties, are reviewed for possible impairments when events or changes in
circumstances indicate that the carrying amount may not be recoverable. Determination as to whether and how much an asset is impaired involves management estimates and judgments such as the future price of crude oil, refined and chemical products
and the production profile. However, the impairment reviews and calculations are based on assumptions that are consistent with the Groups business plans taking into account current economic conditions. Favorable changes to some assumptions, or
not updating assumptions previously made, may allow the Group to avoid the need to impair any assets, whereas unfavorable changes may cause the assets to become impaired.
(c) Estimation of asset retirement obligations
Provision is recognized for the future decommissioning and restoration of oil and gas properties. The amount of the provision recognized is the
present values of the estimated future expenditures. The estimation of the future expenditures is based on current local conditions and requirements, including legal requirements, technology, price levels, etc. In addition to these factors, the
present values of these estimated future expenditures are also impacted by the estimation of the economic lives of oil and gas properties and estimates of discount rates. Changes in any of these estimates will impact the operating results and the
financial position of the Group over the remaining economic lives of the oil and gas properties.
Revenue represents revenues from the sale of crude oil, natural gas, refined
products and petrochemical products and from the transmission of crude oil, refined products and natural gas. Analysis of revenue by segment is shown in Note 37.
F-20
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
7
|
PROFIT BEFORE INCOME TAX EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Items credited and charged in arriving at the profit before income tax expense include:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credited
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend income from available-for-sale financial assets
|
|
|
288
|
|
|
|
275
|
|
|
|
358
|
|
Reversal of provision for impairment of receivables
|
|
|
99
|
|
|
|
56
|
|
|
|
80
|
|
Reversal of write down in inventories
|
|
|
59
|
|
|
|
74
|
|
|
|
53
|
|
Government grants
(i)
|
|
|
7,906
|
|
|
|
10,931
|
|
|
|
10,347
|
|
Gain on disposal of certain pipeline net assets and operations
|
|
|
|
|
|
|
|
|
|
|
24,822
|
|
Remeasurement to fair value of pre-existing interest in acquiree
(ii)
|
|
|
22,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible and other assets
|
|
|
4,141
|
|
|
|
4,531
|
|
|
|
3,695
|
|
Auditors remuneration
(iii)
|
|
|
53
|
|
|
|
53
|
|
|
|
53
|
|
Cost of inventories recognized as expense
|
|
|
1,282,039
|
|
|
|
1,713,290
|
|
|
|
1,676,539
|
|
Provision for impairment of receivables
|
|
|
173
|
|
|
|
86
|
|
|
|
29
|
|
Loss on disposal of property, plant and equipment
|
|
|
4,661
|
|
|
|
3,721
|
|
|
|
3,543
|
|
Operating lease expenses
|
|
|
16,786
|
|
|
|
12,582
|
|
|
|
11,902
|
|
Research and development expenses
|
|
|
11,856
|
|
|
|
13,088
|
|
|
|
14,157
|
|
Write down in inventories
|
|
|
3,394
|
|
|
|
1,924
|
|
|
|
413
|
|
(i)
|
Comprises proportionate refund of import value-added tax relating to the import of natural gas (including liquefied natural gas) provided by the PRC government. This value-added tax refund is applicable from January 1,
2011 to December 31, 2020 and available when the import prices of the natural gas and liquefied natural gas imported under any State-sanctioned pipelines are higher than their prescribed selling prices.
|
(ii)
|
The Company, through PetroChina Pipelines Co., Ltd. (a wholly owned subsidiary of the Group), acquired PetroChina United Pipelines Co., Ltd. (a former joint venture of the Group)(Note 18(ii)), and accordingly, the
Company remeasured the fair value of its pre-existing interest in PetroChina United Pipelines Co., Ltd. at the acquisition date, and recognized the difference between the fair value and carrying value of such interest as Other Income in
the consolidated statement of comprehensive income.
|
(iii)
|
The auditors remuneration above represents the annual audit fees paid by the Company. This remuneration does not include fees of RMB 36 paid by subsidiaries to the Companys current auditor and its network
firms which primarily relates to audit, tax compliance and other advisory services (2014: RMB 34, 2013: RMB 28).
|
8
|
EMPLOYEE COMPENSATION COSTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Wages, salaries and allowances
|
|
|
75,651
|
|
|
|
78,329
|
|
|
|
75,691
|
|
Social security costs
|
|
|
42,431
|
|
|
|
42,493
|
|
|
|
40,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
118,082
|
|
|
|
120,822
|
|
|
|
116,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Social security costs mainly represent contributions to plans for staff welfare organized by the PRC municipal
and provincial governments and others including contributions to the retirement benefit plans (Note 32).
F-21
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
9
|
TAXES OTHER THAN INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Crude oil special gain levy
|
|
|
|
|
|
|
64,376
|
|
|
|
72,726
|
|
Consumption tax
|
|
|
149,323
|
|
|
|
104,262
|
|
|
|
99,800
|
|
Resource tax
|
|
|
18,584
|
|
|
|
26,305
|
|
|
|
28,409
|
|
Other
|
|
|
37,977
|
|
|
|
43,054
|
|
|
|
47,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
205,884
|
|
|
|
237,997
|
|
|
|
248,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In accordance with PRC new tax rules and regulations, the threshold above which crude oil special gain levy
will be imposed (with the five-level progressive tax rates varying from 20% to 40% remaining) was raised from US$ 40 per barrel to US$ 55 per barrel, and was effective from November 1, 2011. The threshold was raised from US$ 55 to US$ 65 per barrel,
and the change was effective from January 1, 2015.
Resource tax on domestic sales of crude oil and natural gas, assessed based on value
instead of volume (with rates from 5% to 10% and the resource tax rate applicable to the Group up to 5%), was implemented nationally, and was effective from November 1, 2011. Resource tax on domestic sales of crude oil and natural gas, assessed
based on value instead of volume (with rates from 5% to 10% and the resource tax rate applicable to the Group up to 6%), was implemented nationally, and the change was effective from December 1, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Interest on
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans
|
|
|
1,259
|
|
|
|
1,926
|
|
|
|
1,464
|
|
Other loans
|
|
|
19,892
|
|
|
|
19,336
|
|
|
|
20,803
|
|
Accretion expense (Note 31)
|
|
|
5,950
|
|
|
|
5,406
|
|
|
|
4,690
|
|
Less: Amounts capitalized
|
|
|
(2,773
|
)
|
|
|
(3,349
|
)
|
|
|
(3,876
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,328
|
|
|
|
23,319
|
|
|
|
23,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts capitalized are borrowing costs that are attributable to the construction of a qualifying asset. The
average interest rate used to capitalize such general borrowing cost was 4.28% -5.76% per annum for the year ended December 31, 2015(2014: 5.76%, 2013: 5.76%).
F-22
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
11
|
EMOLUMENTS OF DIRECTORS AND SUPERVISORS
|
Details of the emoluments of directors and
supervisors for the years ended December 31, 2015, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
Name
|
|
Fee for
directors
and
supervisors
|
|
|
Salaries,
allowances
and other
benefits
|
|
|
Contribution
to retirement
benefit
scheme
|
|
|
Total
|
|
|
Total
|
|
|
Total
|
|
|
|
RMB000
|
|
|
RMB000
|
|
|
RMB000
|
|
|
RMB000
|
|
|
RMB000
|
|
|
RMB000
|
|
Chairman:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Wang Yilin
(i)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Zhou Jiping
(i)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,212
|
|
Vice Chairman:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Wang Dongjin
(ii)
|
|
|
|
|
|
|
576
|
|
|
|
158
|
|
|
|
734
|
|
|
|
1,137
|
|
|
|
1,066
|
|
|
|
|
|
|
|
|
Executive director:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Liu Hongbin
(iv)
|
|
|
|
|
|
|
546
|
|
|
|
153
|
|
|
|
699
|
|
|
|
1,001
|
|
|
|
855
|
|
Mr. Ran Xinquan
(ix)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
402
|
|
Mr. Zhao Zhengzhang
(iii)
|
|
|
|
|
|
|
516
|
|
|
|
155
|
|
|
|
671
|
|
|
|
892
|
|
|
|
777
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,062
|
|
|
|
308
|
|
|
|
1,370
|
|
|
|
1,893
|
|
|
|
2,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-executive directors:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Li Xinhua
(v)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Wang Guoliang
(v)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Yu Baocai
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Shen Diancheng
(v)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Liu Yuezhen
(v)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Liu Hongru
(v)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
153
|
|
|
|
243
|
|
Mr. Franco Bernabè
(v)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111
|
|
|
|
244
|
|
Mr. Li Yongwu
(v)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
161
|
|
|
|
252
|
|
Mr. Cui Junhui
(v)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
255
|
|
Mr. Chen Zhiwu
|
|
|
220
|
|
|
|
|
|
|
|
|
|
|
|
220
|
|
|
|
228
|
|
|
|
219
|
|
Mr. Richard H. Matzke
(v)
|
|
|
230
|
|
|
|
|
|
|
|
|
|
|
|
230
|
|
|
|
116
|
|
|
|
|
|
Mr. Lin Boqiang
(v)
|
|
|
249
|
|
|
|
|
|
|
|
|
|
|
|
249
|
|
|
|
172
|
|
|
|
|
|
Mr. Zhang Biyi
(v)
|
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
252
|
|
|
|
153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
951
|
|
|
|
|
|
|
|
|
|
|
|
951
|
|
|
|
1,094
|
|
|
|
1,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supervisors:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Guo Jinping
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Zhang Fengshan
(vii)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Sun Xianfeng
(vi)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Li Qingyi
(vi)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Jia Yimin
(vii)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Jiang Lifu
(vii)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mr. Wang Guangjun
(vii)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
483
|
|
|
|
779
|
|
Mr. Li Luguang
(vii)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
529
|
|
|
|
|
|
Mr. Yao Wei
|
|
|
|
|
|
|
707
|
|
|
|
89
|
|
|
|
796
|
|
|
|
793
|
|
|
|
857
|
|
Mr. Liu Hehe
|
|
|
|
|
|
|
655
|
|
|
|
69
|
|
|
|
724
|
|
|
|
615
|
|
|
|
710
|
|
Mr. Yang Hua
(vii)
|
|
|
|
|
|
|
785
|
|
|
|
53
|
|
|
|
838
|
|
|
|
454
|
|
|
|
|
|
Mr. Li Jiamin
(vii)
|
|
|
|
|
|
|
595
|
|
|
|
176
|
|
|
|
771
|
|
|
|
630
|
|
|
|
|
|
Mr. Wang Daocheng
(vii)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
112
|
|
|
|
228
|
|
Mr. Fan Fuchun
(vi)(vii)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106
|
|
|
|
145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,742
|
|
|
|
387
|
|
|
|
3,129
|
|
|
|
3,722
|
|
|
|
2,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
951
|
|
|
|
4,380
|
|
|
|
853
|
|
|
|
6,184
|
|
|
|
7,846
|
|
|
|
8,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-23
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(i)
|
Mr. Wang Yilin was elected as the chairman from June 23, 2015, and Mr. Zhou Jiping ceased being the chairman from June 23, 2015.
|
(ii)
|
Mr. Wang Dongjin also serves as the Chief Executive.
|
(iii)
|
Mr. Zhao Zhengzhang was elected as an executive director from June 23, 2015.
|
(iv)
|
Mr. Liu Hongbin was elected as the executive director from May 22, 2014.
|
(v)
|
Mr. Li Xinhua, Mr. Wang Guoliang, Mr. Liu Hongru, Mr. Franco Bernabè, Mr. Li Yongwu and Mr. Cui Junhui ceased being directors from May 22, 2014; Mr. Shen Diancheng, Mr. Liu Yuezhen, Mr. Richard H. Matzke and Mr.
Lin Boqiang were elected as directors from May 22, 2014; Mr. Zhang Biyi was elected as a director from October 29, 2014.
|
(vi)
|
Mr. Sun Xianfeng ceased being a supervisor from May 23, 2013, and Mr. Li Qingyi and Mr. Fan Fuchun were elected as supervisors from that date.
|
(vii)
|
Mr. Wang Guangjun, Mr. Wang Daocheng and Mr. Fan Fuchun ceased being supervisors from May 22, 2014; Mr. Zhang Fengshan, Mr. Jia Yimin, Mr. Li Luguang, Mr. Li Jiamin were elected as supervisors from May 22, 2014.
|
Mr. Li Luguang ceased being supervisors from August 26, 2014.
Mr. Jiang Lifu and Mr. Yang Hua were elected as supervisors from October 29, 2014.
(viii)
|
Emoluments set out above exclude RMB 3.31 paid to directors of the Company for the year of 2010, 2011 and 2012 of the deferred merit pay in accordance with relevant requirements by the PRC government in 2013.
|
(ix)
|
The emoluments received by the following persons are not reflected in the analysis shown above:
|
Mr. Jiang Jiemin ceased being the chairman from March 18, 2013, and received no emoluments from the Company during the year 2015, 2014 and
2013; Mr. Liao Yongyuan ceased being the non-executive director and vice chairman from March 17, 2015, and emoluments received from the Company during the year 2015, 2014 and 2013 were RMB nil, RMB nil and RMB 1.124, respectively; Mr. Ran Xinquan
ceased being the executive director from August 26, 2013, and emoluments received from the Company during the year 2015, 2014 and 2013 were RMB nil, RMB nil and RMB 0.402, respectively; Mr. Wang Lixin ceased being the supervisor from August 26,
2014, and received no emoluments from the Company during the year 2015, 2014 and 2013; Mr. Wen Qingshan ceased being the supervisor from December 17, 2013, and received no emoluments from the Company during the year 2015, 2014 and 2013.
None of the directors and supervisors has waived their remuneration during the year ended December 31, 2015. (2014: None of the directors and
supervisors has waived their remuneration during the year ended December 31, 2014 except for Mr. Cui Junhui, 2013: None)
The five highest
paid individuals in the Company for the year ended December 31, 2015 include three supervisors whose emoluments are reflected in the analysis shown above and the note; and two members of the key management team whose allowances and other benefits
were RMB 0.780 and RMB 0.768, respectively, and whose contribution to retirement benefit scheme were RMB 0.130 and RMB 0.132, respectively.
The five highest paid individuals in the Company for the year ended December 31, 2014 include five directors whose emoluments are reflected in
the analysis shown above and the note.
During 2015, 2014 and 2013, the Company did not incur any severance payment to any director for
loss of office or any payment as inducement to any director to join the Company.
F-24
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Current taxes
|
|
|
18,998
|
|
|
|
41,007
|
|
|
|
52,112
|
|
Deferred taxes (Note 30)
|
|
|
(3,272
|
)
|
|
|
(3,276
|
)
|
|
|
(16,323
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,726
|
|
|
|
37,731
|
|
|
|
35,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In accordance with the relevant PRC income tax rules and regulations, the PRC corporate income tax rate
applicable to the Group is principally 25%. Operations of the Group in western regions in China qualified for certain tax incentives in the form of a preferential income tax rate of 15% through the year 2020.
The tax on the Groups profit before taxation differs from the theoretical amount that would arise using the corporate income tax rate in
the PRC applicable to the Group as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Profit before income tax expense
|
|
|
57,815
|
|
|
|
156,759
|
|
|
|
178,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax calculated at a tax rate of 25%
|
|
|
14,454
|
|
|
|
39,190
|
|
|
|
44,516
|
|
Tax return true-up
|
|
|
2,008
|
|
|
|
1,900
|
|
|
|
1,005
|
|
Effect of income taxes from international operations in excess of taxes at the PRC statutory tax
rate
|
|
|
910
|
|
|
|
2,302
|
|
|
|
2,351
|
|
Effect of preferential tax rate
|
|
|
(5,436
|
)
|
|
|
(6,948
|
)
|
|
|
(15,687
|
)
|
Tax effect of income not subject to tax
|
|
|
(2,875
|
)
|
|
|
(4,953
|
)
|
|
|
(3,743
|
)
|
Tax effect of expenses not deductible for tax purposes
|
|
|
6,665
|
|
|
|
6,240
|
|
|
|
7,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
15,726
|
|
|
|
37,731
|
|
|
|
35,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
|
BASIC AND DILUTED EARNINGS PER SHARE
|
Basic and diluted earnings per share for the year
ended December 31, 2015, 2014 and 2013 have been computed by dividing profit for the year attributable to owners of the Company of RMB 35,517, RMB 107,172 and RMB 129,599 respectively by 183,021 million shares issued and outstanding for the year.
There are no potentially dilutive ordinary shares.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Interim dividends attributable to owners of the Company for 2015
(a)
|
|
|
11,433
|
|
|
|
|
|
|
|
|
|
Proposed final dividends attributable to owners of the Company for 2015
(b)
|
|
|
4,550
|
|
|
|
|
|
|
|
|
|
Interim dividends attributable to owners of the Company for 2014
(c)
|
|
|
|
|
|
|
30,656
|
|
|
|
|
|
Final dividends attributable to owners of the Company for 2014
(d)
|
|
|
|
|
|
|
17,572
|
|
|
|
|
|
Interim dividends attributable to owners of the Company for 2013
(e)
|
|
|
|
|
|
|
|
|
|
|
29,485
|
|
Final dividends attributable to owners of the Company for 2013
(f)
|
|
|
|
|
|
|
|
|
|
|
28,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,983
|
|
|
|
48,228
|
|
|
|
58,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-25
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(a)
|
Interim dividends attributable to owners of the Company in respect of 2015 of RMB 0.06247 yuan per share amounting to a total of RMB 11,433 were paid on September 18, 2015 (A shares) and October 27, 2015
(H shares).
|
(b)
|
At the 1st meeting of the Board in 2016, the Board of Directors proposed final dividends attributable to owners of the Company in respect of 2015 of RMB 0.02486 yuan per share amounting to a total of RMB 4,550. These
consolidated financial statements do not reflect this dividend payable as the final dividends were proposed after the reporting period and will be accounted for in equity as an appropriation of retained earnings in the year ending December 31, 2016
when approved at the forthcoming Annual General Meeting.
|
(c)
|
Interim dividends attributable to owners of the Company in respect of 2014 of RMB 0.16750 yuan per share amounting to a total of RMB 30,656 were paid on September 19, 2014 (A share) and September 29, 2014 (H
shares).
|
(d)
|
Final dividends attributable to owners of the Company in respect of 2014 of RMB 0.09601 yuan per share amounting to a total of RMB 17,572 were paid on July 9, 2015 (A share) and August 13, 2015 (H shares).
|
(e)
|
Interim dividends attributable to owners of the Company in respect of 2013 of RMB 0.16110 yuan per share amounting to a total of RMB 29,485 were paid on October 24, 2013.
|
(f)
|
Final dividends attributable to owners of the Company in respect of 2013 of RMB 0.15755 yuan per share amounting to a total of RMB 28,835 were paid on July 17, 2014.
|
15
|
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2015
|
|
Buildings
|
|
|
Oil
and Gas
Properties
|
|
|
Equipment
and
Machinery
|
|
|
Motor
Vehicles
|
|
|
Other
|
|
|
Construction
in Progress
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of the year
|
|
|
192,026
|
|
|
|
1,688,154
|
|
|
|
850,075
|
|
|
|
28,217
|
|
|
|
19,345
|
|
|
|
246,094
|
|
|
|
3,023,911
|
|
Additions
|
|
|
4,421
|
|
|
|
6,745
|
|
|
|
70,253
|
|
|
|
2,403
|
|
|
|
944
|
|
|
|
191,466
|
|
|
|
276,232
|
|
Transfers
|
|
|
12,675
|
|
|
|
133,708
|
|
|
|
39,084
|
|
|
|
|
|
|
|
1,405
|
|
|
|
(186,872
|
)
|
|
|
|
|
Disposals or write offs
|
|
|
(2,354
|
)
|
|
|
(14,961
|
)
|
|
|
(5,563
|
)
|
|
|
(867
|
)
|
|
|
(280
|
)
|
|
|
(9,608
|
)
|
|
|
(33,633
|
)
|
Currency translation differences
|
|
|
(1,564
|
)
|
|
|
(13,759
|
)
|
|
|
(518
|
)
|
|
|
(167
|
)
|
|
|
(396
|
)
|
|
|
(4,276
|
)
|
|
|
(20,680
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
205,204
|
|
|
|
1,799,887
|
|
|
|
953,331
|
|
|
|
29,586
|
|
|
|
21,018
|
|
|
|
236,804
|
|
|
|
3,245,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of the year
|
|
|
(68,649
|
)
|
|
|
(807,712
|
)
|
|
|
(373,401
|
)
|
|
|
(17,381
|
)
|
|
|
(8,968
|
)
|
|
|
(109
|
)
|
|
|
(1,276,220
|
)
|
Charge for the year and others
|
|
|
(10,182
|
)
|
|
|
(115,996
|
)
|
|
|
(51,410
|
)
|
|
|
(2,153
|
)
|
|
|
(2,367
|
)
|
|
|
|
|
|
|
(182,108
|
)
|
Impairment charges
|
|
|
(81
|
)
|
|
|
(19,893
|
)
|
|
|
(1,489
|
)
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(3,554
|
)
|
|
|
(25,022
|
)
|
Disposals or write offs or transfers
|
|
|
1,296
|
|
|
|
10,039
|
|
|
|
4,434
|
|
|
|
771
|
|
|
|
191
|
|
|
|
3
|
|
|
|
16,734
|
|
Currency translation differences
|
|
|
712
|
|
|
|
4,008
|
|
|
|
551
|
|
|
|
146
|
|
|
|
407
|
|
|
|
(133
|
)
|
|
|
5,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
(76,904
|
)
|
|
|
(929,554
|
)
|
|
|
(421,315
|
)
|
|
|
(18,619
|
)
|
|
|
(10,740
|
)
|
|
|
(3,793
|
)
|
|
|
(1,460,925
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
128,300
|
|
|
|
870,333
|
|
|
|
532,016
|
|
|
|
10,967
|
|
|
|
10,278
|
|
|
|
233,011
|
|
|
|
1,784,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-26
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
|
Buildings
|
|
|
Oil
and Gas
Properties
|
|
|
Equipment
and
Machinery
|
|
|
Motor
Vehicles
|
|
|
Other
|
|
|
Construction
in Progress
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of the year
|
|
|
177,705
|
|
|
|
1,495,374
|
|
|
|
759,411
|
|
|
|
27,743
|
|
|
|
17,412
|
|
|
|
288,538
|
|
|
|
2,766,183
|
|
Additions
|
|
|
1,406
|
|
|
|
43,935
|
|
|
|
5,160
|
|
|
|
1,127
|
|
|
|
890
|
|
|
|
251,670
|
|
|
|
304,188
|
|
Transfers
|
|
|
14,618
|
|
|
|
167,979
|
|
|
|
97,759
|
|
|
|
|
|
|
|
1,284
|
|
|
|
(281,640
|
)
|
|
|
|
|
Disposals or write offs
|
|
|
(1,974
|
)
|
|
|
(8,635
|
)
|
|
|
(12,519
|
)
|
|
|
(692
|
)
|
|
|
(348
|
)
|
|
|
(12,063
|
)
|
|
|
(36,231
|
)
|
Currency translation differences
|
|
|
271
|
|
|
|
(10,499
|
)
|
|
|
264
|
|
|
|
39
|
|
|
|
107
|
|
|
|
(411
|
)
|
|
|
(10,229
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
192,026
|
|
|
|
1,688,154
|
|
|
|
850,075
|
|
|
|
28,217
|
|
|
|
19,345
|
|
|
|
246,094
|
|
|
|
3,023,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of the year
|
|
|
(59,919
|
)
|
|
|
(694,318
|
)
|
|
|
(339,545
|
)
|
|
|
(15,967
|
)
|
|
|
(7,493
|
)
|
|
|
(118
|
)
|
|
|
(1,117,360
|
)
|
Charge for the year and others
|
|
|
(9,712
|
)
|
|
|
(118,126
|
)
|
|
|
(40,541
|
)
|
|
|
(2,021
|
)
|
|
|
(1,670
|
)
|
|
|
(5
|
)
|
|
|
(172,075
|
)
|
Impairment charges
|
|
|
(1
|
)
|
|
|
(3,684
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,685
|
)
|
Disposals or write offs or transfers
|
|
|
1,041
|
|
|
|
4,935
|
|
|
|
6,766
|
|
|
|
621
|
|
|
|
246
|
|
|
|
12
|
|
|
|
13,621
|
|
Currency translation differences
|
|
|
(58
|
)
|
|
|
3,481
|
|
|
|
(81
|
)
|
|
|
(14
|
)
|
|
|
(51
|
)
|
|
|
2
|
|
|
|
3,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
(68,649
|
)
|
|
|
(807,712
|
)
|
|
|
(373,401
|
)
|
|
|
(17,381
|
)
|
|
|
(8,968
|
)
|
|
|
(109
|
)
|
|
|
(1,276,220
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
123,377
|
|
|
|
880,442
|
|
|
|
476,674
|
|
|
|
10,836
|
|
|
|
10,377
|
|
|
|
245,985
|
|
|
|
1,747,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The depreciation charge of the Group for the year ended December 31, 2015 included impairment losses of RMB
25,022 (2014: RMB 3,685, 2013: RMB 3,857 primarily related to certain of the Groups chemical production facilities under the Refining and Chemicals segment) primarily related to oil and gas properties and construction in progress under the
Exploration and Production segment of RMB 22,922 (2014: RMB 3,684, 2013: RMB nil).
The primary factor resulting in these impairment
losses in respect of oil and gas properties was the lower price of crude oil, higher production costs and operating costs. The carrying values of these oil and gas properties were written down to their recoverable amounts which were determined based
on the present values of the expected future cash flows of the assets using a pre-tax discount rate for the years ended December 31, 2015, 2014 and 2013, respectively. The oil and gas pricing was a factor used in the determination of the present
values of the expected future cash flows of the assets and had an impact on the recognition of the assets impairment.
The following table
indicates the changes to the Groups exploratory well costs, which are included in construction in progress, for the years ended December 31, 2015, 2014 and 2013.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
At beginning of the year
|
|
|
20,878
|
|
|
|
24,507
|
|
|
|
22,338
|
|
Additions to capitalized exploratory well costs pending the determination of proved
reserves
|
|
|
21,698
|
|
|
|
26,504
|
|
|
|
30,640
|
|
Reclassified to wells, facilities, and equipment based on the determination of proved
reserves
|
|
|
(12,791
|
)
|
|
|
(18,070
|
)
|
|
|
(16,433
|
)
|
Capitalized exploratory well costs charged to expense
|
|
|
(9,608
|
)
|
|
|
(12,063
|
)
|
|
|
(12,038
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
20,177
|
|
|
|
20,878
|
|
|
|
24,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-27
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
The following table provides an aging of capitalized exploratory well
costs based on the date the drilling was completed.
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
One year or less
|
|
|
13,330
|
|
|
|
14,913
|
|
Over one year
|
|
|
6,847
|
|
|
|
5,965
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31
|
|
|
20,177
|
|
|
|
20,878
|
|
|
|
|
|
|
|
|
|
|
RMB 6,847 at December 31, 2015 (December 31, 2014: RMB 5,965) of capitalized exploratory well costs over one
year are principally related to wells that are under further evaluation of drilling results or pending completion of development planning to ascertain economic viability.
16
|
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
|
The summarized financial information of
the Groups principal associates and joint ventures, including the aggregated amounts of assets, liabilities, revenue, profit or loss and the interest held by the Group were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Country of
Incorporation
|
|
|
Registered
Capital
|
|
|
Principal Activities
|
|
Interest Held
|
|
|
|
|
|
Direct %
|
|
|
Indirect %
|
|
Dalian West Pacific Petrochemical Co., Ltd.
|
|
|
PRC
|
|
|
|
USD 258
million
|
|
|
Production and sale of petroleum and petrochemical products
|
|
|
28.44
|
|
|
|
|
|
|
|
|
|
|
|
China Marine Bunker (PetroChina) Co., Ltd.
|
|
|
PRC
|
|
|
|
1,000
|
|
|
Oil import and
export trade and
transportation, sale and storage
|
|
|
|
|
|
|
50.00
|
|
|
|
|
|
|
|
China Petroleum Finance Co., Ltd.
|
|
|
PRC
|
|
|
|
5,441
|
|
|
Deposits, loans, settlement, lending, bills acceptance discounting, guarantee and other banking business
|
|
|
49.00
|
|
|
|
|
|
|
|
|
|
|
|
Arrow Energy Holdings Pty Ltd.
|
|
|
Australia
|
|
|
|
AUD 2
|
|
|
Exploration, development and sale of coal seam gas
|
|
|
|
|
|
|
50.00
|
|
|
|
|
|
|
|
PetroChina United Pipelines Co., Ltd.
(i)
(Note(18(ii)))
|
|
|
PRC
|
|
|
|
40,000
|
|
|
Storage and transportation of natural gas through pipeline, construction and related technology consulting of petroleum and natural gas pipeline
|
|
|
50.00
|
|
|
|
|
|
|
|
|
|
|
|
CNPC Captive Insurance Co., Ltd.
(ii)
|
|
|
PRC
|
|
|
|
5,000
|
|
|
Property loss insurance, liability insurance, credit insurance and deposit insurance; as well as the application of the above insurance reinsurance and insurance capital business
|
|
|
49.00
|
|
|
|
|
|
F-28
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(i)
|
In June 2013, PetroChina United Pipelines Company Limited, in which the Group has a 50% equity interest, was established with a registered capital of RMB 40,000.
|
(ii)
|
In December 2013, CNPC Captive Insurance Company Limited, in which the Group has a 49% equity interest, was established with a registered capital of RMB 5,000.
|
Dividends received and receivable from associates and joint ventures were RMB 9,489 in 2015 (2014: RMB 11,815, 2013: RMB 9,226).
In 2015, investments in associates and joint ventures of RMB 55 (2014: RMB 71, 2013: RMB 238) were disposed of, resulting in a gain of RMB
1,258 (2014: a gain of RMB 41, 2013: a gain of RMB 11).
In 2015, the share of profit and other comprehensive income in all individually
immaterial associates and joint ventures accounted for using equity method in aggregate was loss of RMB 245 (2014: profit of RMB 5,661, 2013: profit of RMB 7,313) and profit of RMB 1,042 (2014: RMB 113, 2013: RMB 15), respectively.
Interest in Associates
Summarized financial information in respect of the Groups principal associates and reconciliation to carrying amount is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dalian West Pacific
Petrochemical Co., Ltd.
|
|
|
China Petroleum Finance Co.,
Ltd.
|
|
|
CNPC Captive Insurance Co.,
Ltd.
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Percentage ownership interest (%)
|
|
|
28.44
|
|
|
|
28.44
|
|
|
|
49.00
|
|
|
|
49.00
|
|
|
|
49.00
|
|
|
|
49.00
|
|
Current assets
|
|
|
4,214
|
|
|
|
5,564
|
|
|
|
351,516
|
|
|
|
354,634
|
|
|
|
2,272
|
|
|
|
7,689
|
|
Non-current assets
|
|
|
4,180
|
|
|
|
3,472
|
|
|
|
288,537
|
|
|
|
285,833
|
|
|
|
8,095
|
|
|
|
1,010
|
|
Current liabilities
|
|
|
8,248
|
|
|
|
12,473
|
|
|
|
544,674
|
|
|
|
526,866
|
|
|
|
4,907
|
|
|
|
3,527
|
|
Non-current liabilities
|
|
|
7,000
|
|
|
|
2,368
|
|
|
|
51,809
|
|
|
|
74,876
|
|
|
|
|
|
|
|
|
|
Net (liabilities) / assets
|
|
|
(6,854
|
)
|
|
|
(5,805
|
)
|
|
|
43,570
|
|
|
|
38,725
|
|
|
|
5,460
|
|
|
|
5,172
|
|
Groups share of net assets
|
|
|
|
|
|
|
|
|
|
|
21,349
|
|
|
|
18,975
|
|
|
|
2,675
|
|
|
|
2,534
|
|
Goodwill
|
|
|
|
|
|
|
|
|
|
|
349
|
|
|
|
349
|
|
|
|
|
|
|
|
|
|
Carrying amount of interest in associates
|
|
|
|
|
|
|
|
|
|
|
21,698
|
|
|
|
19,324
|
|
|
|
2,675
|
|
|
|
2,534
|
|
F-29
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Summarized statement of comprehensive income is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dalian West Pacific
Petrochemical Co., Ltd.
|
|
|
China Petroleum
Finance Co., Ltd.
|
|
|
CNPC Captive
Insurance Co., Ltd.
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Revenue
|
|
|
18,170
|
|
|
|
38,983
|
|
|
|
34,839
|
|
|
|
10,335
|
|
|
|
9,703
|
|
|
|
9,672
|
|
|
|
480
|
|
|
|
376
|
|
|
|
37
|
|
(Loss) / profit for the year
|
|
|
(984
|
)
|
|
|
(1,465
|
)
|
|
|
(828
|
)
|
|
|
5,839
|
|
|
|
5,432
|
|
|
|
5,237
|
|
|
|
286
|
|
|
|
173
|
|
|
|
(1
|
)
|
Other comprehensive income / (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
294
|
|
|
|
561
|
|
|
|
(588
|
)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive (loss)/ income
|
|
|
(984
|
)
|
|
|
(1,465
|
)
|
|
|
(828
|
)
|
|
|
6,133
|
|
|
|
5,993
|
|
|
|
4,649
|
|
|
|
287
|
|
|
|
173
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Groups share of total comprehensive income/ (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,005
|
|
|
|
2,937
|
|
|
|
2,278
|
|
|
|
141
|
|
|
|
85
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends received by the Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
631
|
|
|
|
1,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest in Joint Ventures
Summarized balance sheet in respect of the Groups principal joint ventures and reconciliation to carrying amount is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Marine Bunker
(PetroChina) Co., Ltd.
|
|
|
Arrow Energy
Holdings Pty Ltd.
|
|
|
PetroChina United
Pipelines Co., Ltd.
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Percentage ownership interest (%)
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
50.00
|
|
|
|
|
|
|
|
50.00
|
|
Non-current assets
|
|
|
2,076
|
|
|
|
1,966
|
|
|
|
34,902
|
|
|
|
42,363
|
|
|
|
|
|
|
|
73,861
|
|
Current assets
|
|
|
4,653
|
|
|
|
6,060
|
|
|
|
597
|
|
|
|
709
|
|
|
|
|
|
|
|
13,900
|
|
Including: cash and cash equivalents
|
|
|
1,703
|
|
|
|
1,585
|
|
|
|
355
|
|
|
|
460
|
|
|
|
|
|
|
|
266
|
|
Non-current liabilities
|
|
|
691
|
|
|
|
707
|
|
|
|
23,595
|
|
|
|
18,973
|
|
|
|
|
|
|
|
|
|
Including: Non-current
financial liabilities excluding trade and other payables and provisions
|
|
|
504
|
|
|
|
518
|
|
|
|
14,919
|
|
|
|
11,873
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
3,399
|
|
|
|
4,806
|
|
|
|
1,365
|
|
|
|
1,237
|
|
|
|
|
|
|
|
2,034
|
|
Including: Current financial liabilities excluding trade and other payables and
provisions
|
|
|
1,308
|
|
|
|
2,277
|
|
|
|
269
|
|
|
|
257
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
|
2,639
|
|
|
|
2,513
|
|
|
|
10,539
|
|
|
|
22,862
|
|
|
|
|
|
|
|
85,727
|
|
Net assets attributable to owners
|
|
|
2,416
|
|
|
|
2,406
|
|
|
|
10,539
|
|
|
|
22,862
|
|
|
|
|
|
|
|
85,727
|
|
Groups share of net assets
|
|
|
1,208
|
|
|
|
1,203
|
|
|
|
5,270
|
|
|
|
11,431
|
|
|
|
|
|
|
|
42,864
|
|
Elimination of unrealized profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,473
|
)
|
Elimination of transactions with the Group
|
|
|
|
|
|
|
|
|
|
|
(41
|
)
|
|
|
(38
|
)
|
|
|
|
|
|
|
|
|
Carrying amount of interest in joint ventures
|
|
|
1,208
|
|
|
|
1,203
|
|
|
|
5,229
|
|
|
|
11,393
|
|
|
|
|
|
|
|
38,391
|
|
F-30
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Summarized statement of comprehensive income and dividends received by
the group is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Marine Bunker
(PetroChina) Co., Ltd.
|
|
|
Arrow Energy Holdings Pty
Ltd.
|
|
|
PetroChina United
Pipelines Co., Ltd.
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Revenue
|
|
|
27,587
|
|
|
|
53,552
|
|
|
|
56,464
|
|
|
|
971
|
|
|
|
1,120
|
|
|
|
1,188
|
|
|
|
16,334
|
|
|
|
18,566
|
|
|
|
10,326
|
|
Depreciation, depletion and amortization
|
|
|
(88
|
)
|
|
|
(86
|
)
|
|
|
|
|
|
|
(484
|
)
|
|
|
(553
|
)
|
|
|
(543
|
)
|
|
|
(3,973
|
)
|
|
|
(4,004
|
)
|
|
|
(2,209
|
)
|
Interest income
|
|
|
35
|
|
|
|
48
|
|
|
|
18
|
|
|
|
6
|
|
|
|
11
|
|
|
|
14
|
|
|
|
701
|
|
|
|
631
|
|
|
|
3
|
|
Interest expense
|
|
|
(56
|
)
|
|
|
(71
|
)
|
|
|
(79
|
)
|
|
|
(1,189
|
)
|
|
|
(1,052
|
)
|
|
|
(987
|
)
|
|
|
(9
|
)
|
|
|
(9
|
)
|
|
|
|
|
Income tax expense
|
|
|
(33
|
)
|
|
|
(20
|
)
|
|
|
(34
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,459
|
)
|
|
|
(2,000
|
)
|
|
|
(2,297
|
)
|
|
|
(1,095
|
)
|
Net profit / (loss)
|
|
|
93
|
|
|
|
101
|
|
|
|
73
|
|
|
|
(10,753
|
)
|
|
|
(4,439
|
)
|
|
|
(3,910
|
)
|
|
|
7,744
|
|
|
|
8,919
|
|
|
|
4,333
|
|
Total comprehensive income / (loss) 100%
|
|
|
176
|
|
|
|
(9
|
)
|
|
|
43
|
|
|
|
(12,934
|
)
|
|
|
(4,684
|
)
|
|
|
(6,608
|
)
|
|
|
7,744
|
|
|
|
8,919
|
|
|
|
4,333
|
|
Total comprehensive income / (loss) by share
|
|
|
67
|
|
|
|
(14
|
)
|
|
|
22
|
|
|
|
(6,467
|
)
|
|
|
(2,342
|
)
|
|
|
(3,304
|
)
|
|
|
3,872
|
|
|
|
4,460
|
|
|
|
2,167
|
|
Elimination of unrealized profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
219
|
|
|
|
221
|
|
|
|
(4,694
|
)
|
Groups share of total comprehensive income / (loss)
|
|
|
67
|
|
|
|
(14
|
)
|
|
|
22
|
|
|
|
(6,467
|
)
|
|
|
(2,342
|
)
|
|
|
(3,304
|
)
|
|
|
4,091
|
|
|
|
4,681
|
|
|
|
(2,527
|
)
|
Dividends received by the Group
|
|
|
18
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,900
|
|
|
|
1,950
|
|
|
|
1,950
|
|
17
|
AVAILABLE-FOR-SALE FINANCIAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Available-for-sale financial assets
|
|
|
3,198
|
|
|
|
2,489
|
|
Less: Impairment losses
|
|
|
(329
|
)
|
|
|
(319
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
2,869
|
|
|
|
2,170
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets comprise principally unlisted equity securities and bonds.
In 2015, available-for-sale financial assets of RMB 381 (2014: RMB 67, 2013: RMB 51) were disposed of, resulting in the realization of a gain
of RMB 177 (2014: a gain of RMB 100, 2013: a loss of RMB 10).
The principal subsidiaries of the Group are:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Name
|
|
Country of
Incorporation
|
|
Issued
Capital
RMB
|
|
|
Type of
Legal
Entity
|
|
Attributable
Equity
Interest %
|
|
|
Voting
rights
%
|
|
Principal Activities
|
Daqing Oilfield Company Limited
|
|
PRC
|
|
|
47,500
|
|
|
Limited liability company
|
|
|
100.00
|
|
|
100.00
|
|
Exploration, production and sale of crude oil and natural gas
|
F-31
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Name
|
|
Country of
Incorporation
|
|
Issued
Capital
RMB
|
|
|
Type of
Legal
Entity
|
|
Attributable
Equity
Interest %
|
|
|
Voting
rights
%
|
|
Principal Activities
|
|
|
|
|
|
|
|
CNPC Exploration and Development Company Limited
(i)
|
|
PRC
|
|
|
16,100
|
|
|
Limited liability company
|
|
|
50.00
|
|
|
57.14
|
|
Exploration, production and sale of crude oil and natural gas in and outside the PRC
|
|
|
|
|
|
|
|
PetroChina Hong Kong Limited
|
|
Hong Kong
|
|
|
HKD
7,592 million
|
|
|
Limited liability company
|
|
|
100.00
|
|
|
100.00
|
|
Investment holding. The principal activities of its subsidiaries, associates and joint ventures are the exploration, production and sale of crude oil in and outside the PRC as well as natural gas sale and transmission in the
PRC
|
|
|
|
|
|
|
|
PetroChina International Investment Company Limited
|
|
PRC
|
|
|
31,314
|
|
|
Limited liability company
|
|
|
100.00
|
|
|
100.00
|
|
Investment holding. The
principal activities
of its
subsidiaries and joint ventures are the exploration, development
and production of crude
oil, natural gas, oil sands and coalbed
methane outside the PRC
|
|
|
|
|
|
|
|
PetroChina International Company Limited
|
|
PRC
|
|
|
14,000
|
|
|
Limited liability company
|
|
|
100.00
|
|
|
100.00
|
|
Marketing of refined products and trading of crude oil and petrochemical products, storage, investment in refining, chemical engineering, storage facilities, service station, and transportation facilities and related business in
and outside the PRC
|
|
|
|
|
|
|
|
PetroChina Pipelines Co., Ltd.
(ii)
|
|
PRC
|
|
|
50
|
|
|
Limited liability company
|
|
|
72.26
|
|
|
72.26
|
|
Oil and gas pipeline
transportation,
investment
holding, import and export of goods, agency of import and export, import and export of technology, technology promotion service, professional
contractor, main contractor
|
F-32
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(i)
|
The Company consolidated the financial statements of the entity because it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity.
|
(ii)
|
In November 2015, PetroChina Pipelines Co., Ltd. in which the Company has 100% equity interest, was established with a registered capital of RMB 50. In order to consolidate the equity relationships among the
Companys pipeline subsidiaries and establish a centralized platform for management, operation, investment and financing of pipeline assets and to save operational costs, the Company through PetroChina Pipelines Co., Ltd. undergone an internal
reorganization amongst the affiliated pipeline companies in the Company.
|
Before the integration, the Company directly held
50% of the equity interests of PetroChina United Pipelines Co., Ltd. (United Pipelines), which was a joint venture of the Company. After the integration, PetroChina Pipelines Co., Ltd. acquired 100% of the equity interests of United
Pipelines on December 31, 2015. This acquisition was accounted as a business combination. The difference between the cost of acquisition of RMB 121,036 (including cash of RMB 17,856 and equity interests of PetroChina Pipelines Co., Ltd. of RMB
103,180) and the fair value of the identifiable net assets of the acquiree at the acquisition date RMB 83,042 amounting to RMB 37,994 was recognized as goodwill.
At December 31, 2015, the net assets of United Pipelines was RMB 83,042, and its net profit for the period from the date of acquisition to
December 31, 2015 was nil. For the year ended December 31, 2015, revenue and net profit of United Pipelines were RMB 16,334 and RMB 7,744, respectively.
Summarized financial information in respect of the Groups principal subsidiaries with significant non-controlling interests is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNPC Exploration and
Development Company Limited
|
|
|
PetroChina
Pipelines
Co., Ltd.
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
December 31,
2015
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Percentage ownership interest (%)
|
|
|
50
|
%
|
|
|
50
|
%
|
|
|
72.26
|
%
|
Current assets
|
|
|
36,052
|
|
|
|
23,164
|
|
|
|
16,268
|
|
Non-current assets
|
|
|
111,753
|
|
|
|
127,503
|
|
|
|
263,268
|
|
Current liabilities
|
|
|
28,551
|
|
|
|
18,990
|
|
|
|
54,297
|
|
Non-current liabilities
|
|
|
15,420
|
|
|
|
19,496
|
|
|
|
30,492
|
|
Net assets
|
|
|
103,834
|
|
|
|
112,181
|
|
|
|
194,747
|
|
Summarized statement of comprehensive income is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNPC Exploration and
Development Company
Limited
|
|
|
PetroChina
Pipelines
Co., Ltd.
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Revenue
|
|
|
33,541
|
|
|
|
52,258
|
|
|
|
63,260
|
|
|
|
2,796
|
|
Profit from continuing operations
|
|
|
2,448
|
|
|
|
12,473
|
|
|
|
12,700
|
|
|
|
1,015
|
|
Total comprehensive income
|
|
|
(7,889
|
)
|
|
|
9,549
|
|
|
|
9,568
|
|
|
|
1,015
|
|
Profit allocated to non-controlling interests
|
|
|
1,292
|
|
|
|
7,535
|
|
|
|
8,424
|
|
|
|
282
|
|
Dividends paid to non-controlling interests
|
|
|
775
|
|
|
|
3,268
|
|
|
|
3,534
|
|
|
|
720
|
|
F-33
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Summarized statement of cash is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CNPC Exploration and
Development Company
Limited
|
|
|
PetroChina
Pipelines
Co., Ltd.
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Net cash inflow from operating activities
|
|
|
8,293
|
|
|
|
13,792
|
|
|
|
9,523
|
|
|
|
2,554
|
|
Net cash (outflow) / inflow from investing activities
|
|
|
(2,762
|
)
|
|
|
18,060
|
|
|
|
(5,876
|
)
|
|
|
(19,434
|
)
|
Net cash (outflow) / inflow from financing activities
|
|
|
(4,284
|
)
|
|
|
(7,731
|
)
|
|
|
(5,152
|
)
|
|
|
21,744
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
586
|
|
|
|
(44
|
)
|
|
|
(420
|
)
|
|
|
|
|
Net increase / (decrease) in cash and cash equivalents
|
|
|
1,833
|
|
|
|
24,077
|
|
|
|
(1,925
|
)
|
|
|
4,864
|
|
Cash and cash equivalents at the beginning of the year
|
|
|
26,870
|
|
|
|
2,793
|
|
|
|
4,718
|
|
|
|
|
|
Cash and cash equivalents at the end of the year
|
|
|
28,703
|
|
|
|
26,870
|
|
|
|
2,793
|
|
|
|
4,864
|
|
19
|
ADVANCE OPERATING LEASE PAYMENTS
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Land use rights
|
|
|
52,710
|
|
|
|
48,702
|
|
Advance lease payments
|
|
|
17,841
|
|
|
|
17,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,551
|
|
|
|
66,341
|
|
|
|
|
|
|
|
|
|
|
Advance operating lease payments are amortized over the related lease terms using the straight-line method.
20
|
INTANGIBLE AND OTHER NON-CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
December 31, 2014
|
|
|
|
Cost
|
|
|
Accumulated
amortization
|
|
|
Net
|
|
|
Cost
|
|
|
Accumulated
amortization
|
|
|
Net
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Patents and technical know-how
|
|
|
7,119
|
|
|
|
(4,765
|
)
|
|
|
2,354
|
|
|
|
6,979
|
|
|
|
(4,275
|
)
|
|
|
2,704
|
|
Computer software
|
|
|
8,983
|
|
|
|
(5,870
|
)
|
|
|
3,113
|
|
|
|
8,244
|
|
|
|
(5,004
|
)
|
|
|
3,240
|
|
Goodwill
(i)
|
|
|
45,589
|
|
|
|
|
|
|
|
45,589
|
|
|
|
7,233
|
|
|
|
|
|
|
|
7,233
|
|
Other
|
|
|
18,181
|
|
|
|
(5,469
|
)
|
|
|
12,712
|
|
|
|
17,497
|
|
|
|
(4,819
|
)
|
|
|
12,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets
|
|
|
79,872
|
|
|
|
(16,104
|
)
|
|
|
63,768
|
|
|
|
39,953
|
|
|
|
(14,098
|
)
|
|
|
25,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
34,504
|
|
|
|
|
|
|
|
|
|
|
|
37,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
98,272
|
|
|
|
|
|
|
|
|
|
|
|
62,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Goodwill primarily relates to the acquisition of Singapore Petroleum Company, Petroineos Trading Limited and United Pipelines (Note 18(ii)), completed in 2009, 2011 and 2015, respectively. The recoverable amount of all
cash-generating units has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by management. The discount rates used are pre-tax and reflect specific risks
relating to the cash-generating unit. Based on the estimated recoverable amount, no impairment was identified.
|
F-34
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Crude oil and other raw materials
|
|
|
42,605
|
|
|
|
59,870
|
|
Work in progress
|
|
|
8,426
|
|
|
|
13,165
|
|
Finished goods
|
|
|
79,502
|
|
|
|
95,154
|
|
Spare parts and consumables
|
|
|
45
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
130,578
|
|
|
|
168,228
|
|
Less: Write down in inventories
|
|
|
(3,701
|
)
|
|
|
(2,251
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
126,877
|
|
|
|
165,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Accounts receivable
|
|
|
52,785
|
|
|
|
53,620
|
|
Less: Provision for impairment of receivables
|
|
|
(523
|
)
|
|
|
(516
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
52,262
|
|
|
|
53,104
|
|
|
|
|
|
|
|
|
|
|
The aging analysis of accounts receivable (net of impairment of accounts receivable) based on the invoice date
(or date of revenue recognition, if earlier), at December 31, 2015 and 2014 is as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Within 1 year
|
|
|
49,493
|
|
|
|
51,878
|
|
Between 1 and 2 years
|
|
|
2,231
|
|
|
|
862
|
|
Between 2 and 3 years
|
|
|
239
|
|
|
|
282
|
|
Over 3 years
|
|
|
299
|
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52,262
|
|
|
|
53,104
|
|
|
|
|
|
|
|
|
|
|
The Group offers its customers credit terms up to 180 days.
Movements in the provision for impairment of accounts receivable are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
At beginning of the year
|
|
|
516
|
|
|
|
496
|
|
|
|
585
|
|
Provision for impairment of accounts receivable
|
|
|
32
|
|
|
|
74
|
|
|
|
8
|
|
Receivables written off as uncollectible
|
|
|
(12
|
)
|
|
|
(16
|
)
|
|
|
(36
|
)
|
Reversal of provision for impairment of accounts receivable
|
|
|
(13
|
)
|
|
|
(38
|
)
|
|
|
(61
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
523
|
|
|
|
516
|
|
|
|
496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-35
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
23
|
PREPAID EXPENSES AND OTHER CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Other receivables
|
|
|
17,124
|
|
|
|
19,564
|
|
Advances to suppliers
|
|
|
19,334
|
|
|
|
22,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,458
|
|
|
|
42,541
|
|
Less: Provision for impairment
|
|
|
(2,432
|
)
|
|
|
(2,488
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
34,026
|
|
|
|
40,053
|
|
Value-added tax to be deducted
|
|
|
37,600
|
|
|
|
37,485
|
|
Prepaid expenses
|
|
|
956
|
|
|
|
989
|
|
Prepaid income taxes
|
|
|
11,116
|
|
|
|
960
|
|
Other current assets
|
|
|
4,582
|
|
|
|
3,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88,280
|
|
|
|
83,379
|
|
|
|
|
|
|
|
|
|
|
Notes receivable represent mainly bills of acceptance issued by banks
for the sale of goods and products. All notes receivable are due within one year.
25
|
CASH AND CASH EQUIVALENTS
|
The weighted average effective interest rate on bank deposits
was 1.31% per annum for the year ended December 31, 2015 (2014: 2.23% per annum, 2013: 2.03% per annum).
26
|
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Trade payables
|
|
|
69,496
|
|
|
|
84,929
|
|
Advances from customers
|
|
|
50,930
|
|
|
|
54,007
|
|
Salaries and welfare payable
|
|
|
5,900
|
|
|
|
5,903
|
|
Accrued expenses
|
|
|
104
|
|
|
|
164
|
|
Dividends payable by subsidiaries to non-controlling shareholders
|
|
|
475
|
|
|
|
274
|
|
Interest payable
|
|
|
2,995
|
|
|
|
2,621
|
|
Construction fee and equipment cost payables
|
|
|
133,389
|
|
|
|
155,324
|
|
Loans borrowed from related parties
|
|
|
11,055
|
|
|
|
15,665
|
|
Other
|
|
|
56,696
|
|
|
|
45,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
331,040
|
|
|
|
364,060
|
|
|
|
|
|
|
|
|
|
|
Other consists primarily of customer deposits.
F-36
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
The aging analysis of trade payables at December 31, 2015 and 2014 is as
follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Within 1 year
|
|
|
64,830
|
|
|
|
79,903
|
|
Between 1 and 2 years
|
|
|
1,987
|
|
|
|
2,898
|
|
Between 2 and 3 years
|
|
|
1,106
|
|
|
|
1,059
|
|
Over 3 years
|
|
|
1,573
|
|
|
|
1,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69,496
|
|
|
|
84,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Short-term borrowings excluding current portion of long-term borrowings
|
|
|
70,059
|
|
|
|
115,333
|
|
Current portion of long-term borrowings
|
|
|
36,167
|
|
|
|
53,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106,226
|
|
|
|
169,128
|
|
Long-term borrowings
|
|
|
434,475
|
|
|
|
370,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
540,701
|
|
|
|
539,429
|
|
|
|
|
|
|
|
|
|
|
Borrowings of the Group of RMB 72,625 were guaranteed by CNPC, its fellow subsidiaries and a third party at
December 31, 2015 (December 31, 2014: RMB 50,878).
The Groups borrowings include secured liabilities totaling RMB 104 at December
31, 2015 (December 31, 2014: RMB 3,367). These borrowings are secured over equity amounting to RMB 152 (December 31, 2014: RMB 3,301, majority secured over certain of the Groups time deposits with maturities over one year).
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Total borrowings:
|
|
|
|
|
|
|
|
|
interest free
|
|
|
199
|
|
|
|
1,345
|
|
at fixed rates
|
|
|
358,289
|
|
|
|
339,624
|
|
at floating rates
|
|
|
182,213
|
|
|
|
198,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
540,701
|
|
|
|
539,429
|
|
|
|
|
|
|
|
|
|
|
Weighted average effective interest rates:
|
|
|
|
|
|
|
|
|
bank loans
|
|
|
2.15
|
%
|
|
|
1.90
|
%
|
corporate debentures
|
|
|
4.59
|
%
|
|
|
4.59
|
%
|
medium-term notes
|
|
|
3.97
|
%
|
|
|
4.12
|
%
|
other loans
|
|
|
3.69
|
%
|
|
|
4.15
|
%
|
F-37
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
The borrowings by major currency at December 31, 2015 and December 31,
2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
RMB
|
|
|
413,023
|
|
|
|
402,180
|
|
US Dollar
|
|
|
120,180
|
|
|
|
134,011
|
|
Other currency
|
|
|
7,498
|
|
|
|
3,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
540,701
|
|
|
|
539,429
|
|
|
|
|
|
|
|
|
|
|
The fair values of the Groups long-term borrowings including the current portion of long-term borrowings
are RMB 465,848 (December 31, 2014: RMB 416,017) at December 31, 2015. The carrying amounts of short-term borrowings approximate their fair values.
The fair values are based on discounted cash flows using applicable discount rates based upon the prevailing market rates of interest
available to the Group for financial instruments with substantially the same terms and characteristics at the dates of the statement of financial position. Such discount rates ranged from 0.06% to 5.60% per annum as of December 31, 2015 (December
31, 2014: 0.27% to 6.18%) depending on the type of the borrowings.
The following table sets out the borrowings remaining
contractual maturities at the date of the statement of financial position, which are based on contractual undiscounted cash flows including principal and interest, and the earliest contractual maturity date:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Within 1 year
|
|
|
125,377
|
|
|
|
189,435
|
|
Between 1 and 2 years
|
|
|
114,772
|
|
|
|
76,999
|
|
Between 2 and 5 years
|
|
|
267,560
|
|
|
|
222,379
|
|
After 5 years
|
|
|
107,439
|
|
|
|
128,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
615,148
|
|
|
|
617,393
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Registered, issued and fully paid:
|
|
|
|
|
|
|
|
|
A shares
|
|
|
161,922
|
|
|
|
161,922
|
|
H shares
|
|
|
21,099
|
|
|
|
21,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
183,021
|
|
|
|
183,021
|
|
|
|
|
|
|
|
|
|
|
In accordance with the Restructuring Agreement between CNPC and the Company effective as of November 5, 1999,
the Company issued 160 billion state-owned shares in exchange for the assets and liabilities transferred to the Company by CNPC. The 160 billion state-owned shares were the initial registered capital of the Company with a par value of RMB 1.00 yuan
per share.
F-38
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
On April 7, 2000, the Company issued 17,582,418,000 shares, represented
by 13,447,897,000 H shares and 41,345,210 ADSs (each representing 100 H shares) in a global initial public offering (Global Offering) and the trading of the H shares and the ADSs on the Stock Exchange of Hong Kong Limited and the New
York Stock Exchange commenced on April 7, 2000 and April 6, 2000, respectively. The H shares and ADSs were issued at prices of HK$ 1.28 per H share and US$ 16.44 per ADS respectively for which the net proceeds to the Company were approximately RMB
20 billion. The shares issued pursuant to the Global Offering rank equally with existing shares.
Pursuant to the approval of the China
Securities Regulatory Commission, 1,758,242,000 state-owned shares of the Company owned by CNPC were converted into H shares for sale in the Global Offering.
On September 1, 2005, the Company issued an additional 3,196,801,818 new H shares at HK$ 6.00 per share and net proceeds to the
Company amounted to approximately RMB 19,692. CNPC also sold 319,680,182 state-owned shares it held concurrently with PetroChinas sale of new H shares in September 2005.
On October 31, 2007, the Company issued 4,000,000,000 new A shares at RMB 16.70 yuan per share and net proceeds to the Company amounted to
approximately RMB 66,243 and the listing and trading of the A shares on the Shanghai Stock Exchange commenced on November 5, 2007.
Following the issuance of the A shares, all the existing state-owned shares issued before November 5, 2007 held by CNPC have been registered
with the China Securities Depository and Clearing Corporation Limited as A shares.
Shareholders rights are governed by the
Company Law of the PRC that requires an increase in registered capital to be approved by the shareholders in shareholders general meetings and the relevant PRC regulatory authorities.
F-39
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Capital Reserve
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
|
133,308
|
|
|
|
133,308
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
|
133,308
|
|
|
|
133,308
|
|
|
|
|
Statutory Common Reserve
Fund
(a)
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
|
184,737
|
|
|
|
175,051
|
|
Transfer from retained earnings
|
|
|
2,103
|
|
|
|
9,686
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
|
186,840
|
|
|
|
184,737
|
|
|
|
|
Special Reserve-Safety Fund Reserve
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
|
10,345
|
|
|
|
8,922
|
|
Safety fund reserve
|
|
|
1,303
|
|
|
|
1,423
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
|
11,648
|
|
|
|
10,345
|
|
|
|
|
Currency Translation Differences
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
|
(20,114
|
)
|
|
|
(13,956
|
)
|
Currency translation differences
|
|
|
(16,952
|
)
|
|
|
(6,158
|
)
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
|
(37,066
|
)
|
|
|
(20,114
|
)
|
|
|
|
Other Reserves
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
|
(22,706
|
)
|
|
|
(22,911
|
)
|
Acquisition of subsidiaries
|
|
|
12,530
|
|
|
|
(48
|
)
|
Fair value gain on available-for-sale financial assets
|
|
|
270
|
|
|
|
106
|
|
Share of the other comprehensive income of associates and joint ventures accounted for using the
equity method
|
|
|
130
|
|
|
|
159
|
|
Other
|
|
|
(14
|
)
|
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
|
(9,790
|
)
|
|
|
(22,706
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
284,940
|
|
|
|
285,570
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Pursuant to the PRC regulations and the Companys Articles of Association, the Company is required to transfer 10% of its net profit, as determined under the PRC accounting regulations, to a Statutory Common
Reserve Fund (Reserve Fund). Appropriation to the Reserve Fund may cease when the fund aggregates to 50% of the Companys registered capital. The transfer to this reserve must be made before distribution of dividends to
shareholders.
|
|
The Reserve Fund shall only be used to make good previous years losses, to expand the Companys production operations, or to increase the capital of the Company. Upon approval of a resolution of shareholders
in a general meeting, the Company may convert its Reserve Fund into share capital and issue bonus shares to existing shareholders in proportion to their original shareholdings or to increase the nominal value of each share currently held by them,
provided that the balance of the Reserve Fund after such issuance is not less than 25% of the Companys registered capital.
|
(b)
|
According to the relevant PRC regulations, the distributable reserve is the lower of the retained earnings computed under PRC accounting regulations and IFRS. As of December 31, 2015, the Companys distributable
reserve amounted to RMB 594,437 (December 31, 2014: RMB 608,423).
|
F-40
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Deferred taxation is calculated on temporary differences under the
liability method using a principal tax rate of 25%.
The movements in the deferred taxation account are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
At beginning of the year
|
|
|
905
|
|
|
|
3,940
|
|
|
|
20,843
|
|
Transfer to profit and loss (Note 12)
|
|
|
(3,272
|
)
|
|
|
(3,276
|
)
|
|
|
(16,323
|
)
|
Credit to other comprehensive income
|
|
|
(1,449
|
)
|
|
|
(172
|
)
|
|
|
(580
|
)
|
Acquisition of subsidiaries
|
|
|
9
|
|
|
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
(3,807
|
)
|
|
|
905
|
|
|
|
3,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax balances before offset are attributable to the following items:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
Current:
|
|
|
|
|
|
|
|
|
Receivables and inventories
|
|
|
9,447
|
|
|
|
11,965
|
|
Tax losses
|
|
|
29,712
|
|
|
|
20,861
|
|
Non-current:
|
|
|
|
|
|
|
|
|
Impairment of long-term assets
|
|
|
7,045
|
|
|
|
6,773
|
|
Other
|
|
|
7,809
|
|
|
|
6,976
|
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
|
54,013
|
|
|
|
46,575
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
Non-current:
|
|
|
|
|
|
|
|
|
Accelerated tax depreciation
|
|
|
37,039
|
|
|
|
41,605
|
|
Other
|
|
|
13,167
|
|
|
|
5,875
|
|
|
|
|
|
|
|
|
|
|
Total deferred tax liabilities
|
|
|
50,206
|
|
|
|
47,480
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax assets
|
|
|
3,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax liabilities
|
|
|
|
|
|
|
905
|
|
|
|
|
|
|
|
|
|
|
Deferred tax balances after offset are listed as below:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Deferred tax assets
|
|
|
16,927
|
|
|
|
14,995
|
|
Deferred tax liabilities
|
|
|
13,120
|
|
|
|
15,900
|
|
There were no material unrecognized tax losses at December 31, 2015 and 2014.
F-41
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
31
|
ASSET RETIREMENT OBLIGATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
At beginning of the year
|
|
|
109,154
|
|
|
|
94,531
|
|
|
|
83,928
|
|
Liabilities incurred
|
|
|
4,266
|
|
|
|
9,992
|
|
|
|
6,729
|
|
Liabilities settled
|
|
|
(677
|
)
|
|
|
(418
|
)
|
|
|
(662
|
)
|
Accretion expense (Note 10)
|
|
|
5,950
|
|
|
|
5,406
|
|
|
|
4,690
|
|
Currency translation differences
|
|
|
(697
|
)
|
|
|
(357
|
)
|
|
|
(154
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of the year
|
|
|
117,996
|
|
|
|
109,154
|
|
|
|
94,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset retirement obligations relate to oil and gas properties (Note 15).
The Group participates in various employee retirement benefit plans (Note
3(t)). Expenses incurred by the Group in connection with the retirement benefit plans for the year ended December 31, 2015 amounted to RMB 16,357 (2014: RMB 15,674, 2013: RMB 14,855).
33
|
CONTINGENT LIABILITIES
|
(a) Bank and other guarantees
At December 31, 2015 and 2014, the Group did not guarantee related parties or third parties any borrowings or others.
(b) Environmental liabilities
China has adopted extensive environmental laws and regulations that affect the operation of the oil and gas industry. Under existing
legislation, however, management believes that there are no probable liabilities, except for the amounts which have already been reflected in the consolidated financial statements, which may have a material adverse effect on the financial position
of the Group.
(c) Legal contingencies
Notwithstanding certain insignificant lawsuits as well as other proceedings outstanding, management believes that any resulting liabilities
will not have a material adverse effect on the financial position of the Group.
(d) Group insurance
The Group has insurance coverage for vehicles and certain assets that are subject to significant operating risks, third-party liability
insurance against claims relating to personal injury, property and environmental damages that result from accidents and also employer liabilities insurance. The potential effect on the financial position of the Group of any liabilities resulting
from future uninsured incidents cannot be estimated by the Group at present.
F-42
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
(a) Operating lease commitments
Operating lease commitments of the Group are mainly for leasing of land, buildings and equipment. Leases range from 1 to 50 years and usually
do not contain renewal options. Future minimum lease payments as of December 31, 2015 and 2014 under non-cancellable operating leases are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
No later than 1 year
|
|
|
9,859
|
|
|
|
9,855
|
|
Later than 1 year and no later than 5 years
|
|
|
30,425
|
|
|
|
30,656
|
|
Later than 5 years
|
|
|
152,053
|
|
|
|
157,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
192,337
|
|
|
|
197,946
|
|
|
|
|
|
|
|
|
|
|
(b) Capital commitments
At December 31, 2015, the Groups capital commitments contracted but not provided for mainly relating to property, plant and equipment
were RMB 56,310 (December 31, 2014: RMB 63,027).
The operating lease and capital commitments above are transactions mainly with CNPC and
its fellow subsidiaries.
(c) Exploration and production licenses
The Company is obligated to make annual payments with respect to its exploration and production licenses to the Ministry of Land and Resources.
Payments incurred were RMB 643 for the year ended December 31, 2015 (2014: RMB 719, 2013: RMB 717).
Estimated annual payments for the
next five years are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Within one year
|
|
|
800
|
|
|
|
800
|
|
Between one and two years
|
|
|
800
|
|
|
|
800
|
|
Between two and three years
|
|
|
800
|
|
|
|
800
|
|
Between three and four years
|
|
|
800
|
|
|
|
800
|
|
Between four and five years
|
|
|
800
|
|
|
|
800
|
|
F-43
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
The Groups major customers are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
Revenue
|
|
|
Percentage
of Total
revenue
|
|
|
Revenue
|
|
|
Percentage
of Total
revenue
|
|
|
Revenue
|
|
|
Percentage
of Total
revenue
|
|
|
|
RMB
|
|
|
%
|
|
|
RMB
|
|
|
%
|
|
|
RMB
|
|
|
%
|
|
China Petroleum & Chemical Corporation
|
|
|
33,482
|
|
|
|
2
|
|
|
|
101,364
|
|
|
|
5
|
|
|
|
72,641
|
|
|
|
3
|
|
CNPC and its fellow subsidiaries
|
|
|
80,045
|
|
|
|
5
|
|
|
|
95,670
|
|
|
|
4
|
|
|
|
80,757
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
113,527
|
|
|
|
7
|
|
|
|
197,034
|
|
|
|
9
|
|
|
|
153,398
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
|
RELATED PARTY TRANSACTIONS
|
CNPC, the controlling shareholder of the Company, is a
state-controlled enterprise directly controlled by the PRC government.
Related parties include CNPC and its fellow subsidiaries, their
associates and joint ventures, other state-owned enterprises and their subsidiaries which the PRC government has control, joint control or significant influence over and enterprises which the Group is able to control, jointly control or exercise
significant influence over, key management personnel of the Company and CNPC and their close family members.
(a) Transactions with
CNPC and its fellow subsidiaries, associates and joint ventures of the Group
The Group has extensive transactions with other
companies in CNPC and its fellow subsidiaries. Due to these relationships, it is possible that the terms of the transactions between the Group and other members of CNPC and its fellow subsidiaries are not the same as those that would result from
transactions with other related parties or wholly unrelated parties.
The principal related party transactions with CNPC and its fellow
subsidiaries, associates and joint ventures of the Group which were carried out in the ordinary course of business, are as follows:
On
August 25, 2011, based on the terms of the Comprehensive Products and Services Agreement amended in 2008, the Company and CNPC entered into a new Comprehensive Products and Services Agreement (the Comprehensive Products and Services
Agreement) for a period of three years which took effect on January 1, 2012. The Comprehensive Products and Services Agreement provides for a range of products and services which may be required and requested by either party. The products and
services to be provided by CNPC and its fellow subsidiaries to the Group under the Comprehensive Products and Services Agreement include construction and technical services, production services, supply of material services, social services,
ancillary services and financial services. The products and services required and requested by either party are provided in accordance with (1) government-prescribed prices; or (2) where there is no government-prescribed price, with reference to
relevant market prices; or (3) where neither (1) nor (2) is applicable, the actual cost incurred or the agreed contractual price. On the basis of the existing Comprehensive Products and Services Agreement, the Company
F-44
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
and CNPC entered into a new Comprehensive Products and Services Agreement on August 28,
2014 for a period of three years which took effect on January 1, 2015. The new Comprehensive Products and Services Agreement has already incorporated the terms of the current Comprehensive Products and Services Agreement which was amended in 2011.
|
|
|
Sales of goods represent the sale of crude oil, refined products, chemical products and natural gas, etc. The total amount of these transactions amounted to RMB 106,304 in the year ended December 31, 2015 (2014: RMB
148,712, 2013: RMB 115,884).
|
|
|
|
Sales of services principally represent the provision of services in connection with the transportation of crude oil and natural gas, etc. The total amount of these transactions amounted to RMB 6,919 in the year ended
December 31, 2015 (2014: RMB 9,413, 2013: RMB 9,139).
|
|
|
|
Purchases of goods and services principally represent construction and technical services, production services, social services, ancillary services and material supply services, etc. The total amount of these
transactions amounted to RMB 322,028 in the year ended December 31, 2015 (2014: RMB 409,397, 2013: RMB 397,015).
|
|
|
|
Purchases of assets principally represent the purchases of manufacturing equipment, office equipment and transportation equipment, etc. The total amount of these transactions amounted to RMB 1,141 in the year ended
December 31, 2015 (2014: RMB 1,498, 2013: RMB 1,228).
|
|
|
|
Amounts due from and to CNPC and its fellow subsidiaries, associates and joint ventures of the Group included in the following accounts captions are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
Accounts receivable
|
|
|
6,658
|
|
|
|
4,144
|
|
Prepayments and other receivables
|
|
|
7,253
|
|
|
|
3,830
|
|
Other non-current assets
|
|
|
11,619
|
|
|
|
13,899
|
|
Accounts payable and accrued liabilities
|
|
|
78,802
|
|
|
|
104,361
|
|
Other non-current liabilities
|
|
|
3,406
|
|
|
|
3,000
|
|
|
|
|
Interest income represents interest from deposits placed with CNPC and its fellow subsidiaries. The total interest income amounted to RMB 304 in the year ended December 31, 2015 (2014: RMB 665, 2013: RMB 429). The
balance of deposits at December 31, 2015 was RMB 19,961 (December 31, 2014: RMB 31,307).
|
|
|
|
Purchases of financial service principally represents interest charged on the loans from CNPC and its fellow subsidiaries, insurance fee, etc. The total amount of these transactions amounted to RMB 14,739 in the year
ended December 31, 2015 (2014: RMB 15,089, 2013: RMB 17,638).
|
|
|
|
The borrowings from CNPC and its fellow subsidiaries at December 31, 2015 were RMB 326,671 (December 31, 2014: RMB 364,789).
|
|
|
|
Rents and other payments made under financial leasing represent the payable by the Group (including all rents, leasing service fees and prices for exercising purchase options) for the period according to the financial
leasing agreements entered into by the Group and CNPC and its fellow subsidiaries. The total rents and other payments made under financial leasing amounted to RMB 238 in the year ended December 31, 2015 (December 31, 2014: RMB 201, December 31,
2013: RMB 193).
|
F-45
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
On August 25, 2011, based on the Land Use Rights Leasing Contract signed
in 2000, the Company and CNPC entered into a Supplemental Land Use Rights Leasing Contract which took effect on January 1, 2012. The Supplemental Land Use Rights Leasing Contract provides for the lease of land covering an aggregate area of
approximately 1,783 million square meters located throughout the PRC at a maximal annual fee (exclusive of tax and government charges) of RMB 3,892. The Supplemental Land Use Rights Leasing Contract will expire at the same time as the Land Use
Rights Leasing Contract. The area and total fee payable for the lease of all such property may be adjusted with the Companys operating needs and by reference to market price every three years. The Company and CNPC each issued a confirmation
letter to the Land Use Rights Leasing Contract on August 28, 2014, which adjusted the rental payable and the area for the leased land parcels. The Company agreed to rent from CNPC parcels of land with an aggregate area of approximately 1,777 million
square meters with rental payable adjusted to approximately RMB 4,831 in accordance with the area of leased land parcels and the current situation of the property market. The Land Use Rights Leasing Contract shall remain unchanged, apart from the
rental payable and the leased area. The confirmation letter shall be effective from January 1, 2015.
On August 25, 2011, based on the
Buildings Leasing Contract and Supplemental Building Leasing Agreement, the Company and CNPC entered into a Revised Buildings Leasing Contract which took effect thereafter. Under this contract, buildings covering an aggregate area of 734,316 square
meters were leased at an average annual fee of RMB 1,049 yuan per square meter. The Revised Building Leasing Contract will expire at the same time as the Building Leasing Agreement. The area and total fee payable for the lease of all such property
may, every three years, be adjusted with the Companys operating needs and by reference to market price which the adjusted prices will not exceed. The Company and CNPC each issued a confirmation letter to the Building Leasing Contract on August
28, 2014, which adjusted the rental payable and the gross floor area for the buildings leased. The Company agreed to lease from CNPC buildings with an aggregate gross floor area of approximately 1,179,586 square meters with rental payable adjusted
to approximately RMB 708 in accordance with the gross floor area leased and the current situation of the market. The Building Leasing Contract shall remain unchanged apart from the rental payable and the gross floor area leased. The confirmation
letter shall be effective from January 1, 2015.
(b) Key management compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year End December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB000
|
|
|
RMB000
|
|
|
RMB000
|
|
Emoluments and other benefits
|
|
|
11,256
|
|
|
|
13,381
|
|
|
|
14,677
|
|
Contribution to retirement benefit scheme
|
|
|
1,915
|
|
|
|
751
|
|
|
|
822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,171
|
|
|
|
14,132
|
|
|
|
15,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
Emoluments set out above for the year ended December 31, 2015 exclude RMB nil paid to key management of the Company for the year of 2010, 2011 and 2012 of the deferred merit pay in accordance with relevant requirements
by the PRC government (2014: RMB nil, 2013: RMB 9.07).
|
(c) Transactions with other state-controlled entities in the
PRC
Apart from transactions with CNPC and its fellow subsidiaries, associates and joint ventures of the Group, the Groups
transactions with other state-controlled entities include but is not limited to the following:
|
|
|
Sales and purchases of goods and services,
|
F-46
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
Bank deposits and borrowings
|
These transactions are conducted in the ordinary course of the
Groups business.
The Group is principally engaged in a broad range of petroleum
related products, services and activities. The Groups operating segments comprise: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. On the basis of these operating segments, the management of the
Company assesses the segmental operating results and allocates resources. Sales between operating segments are conducted principally at market prices. Additionally, the Group presents geographical information based on entities located in regions
with a similar risk profile.
The Exploration and Production segment is engaged in the exploration, development, production and marketing
of crude oil and natural gas.
The Refining and Chemicals segment is engaged in the refining of crude oil and petroleum products,
production and marketing of primary petrochemical products, and derivative petrochemical products and other chemical products.
The
Marketing segment is engaged in the marketing of refined products and the trading business.
The Natural Gas and Pipeline segment is
engaged in the transmission of natural gas, crude oil and refined products and the sale of natural gas.
The Head Office and Other segment
relates to cash management and financing activities, the corporate center, research and development, and other business services supporting the operating business segments of the Group.
The accounting policies of the operating segments are the same as those described in Note 3 Summary of Principal Accounting
Policies.
F-47
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
The segment information for the operating segments for the year ended
December 31, 2015, 2014 and 2013 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2015
|
|
|
|
Exploration
and
Production
|
|
|
Refining
and
Chemicals
|
|
|
Marketing
|
|
|
Natural
Gas and
Pipeline
|
|
|
Head
Office and
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Revenue
|
|
|
475,412
|
|
|
|
642,428
|
|
|
|
1,383,426
|
|
|
|
281,778
|
|
|
|
2,507
|
|
|
|
2,785,551
|
|
Less: intersegment sales
|
|
|
(384,423
|
)
|
|
|
(502,007
|
)
|
|
|
(146,719
|
)
|
|
|
(26,259
|
)
|
|
|
(715
|
)
|
|
|
(1,060,123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers
|
|
|
90,989
|
|
|
|
140,421
|
|
|
|
1,236,707
|
|
|
|
255,519
|
|
|
|
1,792
|
|
|
|
1,725,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
(148,958
|
)
|
|
|
(24,400
|
)
|
|
|
(12,974
|
)
|
|
|
(14,489
|
)
|
|
|
(2,054
|
)
|
|
|
(202,875
|
)
|
Including: Impairment losses of property, plant and equipment
|
|
|
(22,922
|
)
|
|
|
(1,843
|
)
|
|
|
(191
|
)
|
|
|
(66
|
)
|
|
|
|
|
|
|
(25,022
|
)
|
Profit / (loss) from operations
|
|
|
33,961
|
|
|
|
4,883
|
|
|
|
(500
|
)
|
|
|
51,231
|
|
|
|
(10,323
|
)
|
|
|
79,252
|
|
Finance costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,536
|
|
Exchange loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10,168
|
)
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,019
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,328
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net finance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(22,941
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit of associates and joint ventures
|
|
|
(5,599
|
)
|
|
|
66
|
|
|
|
(156
|
)
|
|
|
4,206
|
|
|
|
2,987
|
|
|
|
1,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,815
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,726
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42,089
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets
|
|
|
1,221,942
|
|
|
|
311,149
|
|
|
|
343,721
|
|
|
|
597,240
|
|
|
|
1,518,486
|
|
|
|
3,992,538
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,043
|
|
Investments in associates and joint ventures
|
|
|
32,413
|
|
|
|
1,249
|
|
|
|
9,517
|
|
|
|
3,424
|
|
|
|
24,373
|
|
|
|
70,976
|
|
Elimination of intersegment
balances
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,697,713
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,393,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
157,822
|
|
|
|
15,725
|
|
|
|
7,061
|
|
|
|
20,360
|
|
|
|
1,270
|
|
|
|
202,238
|
|
Segment liabilities
|
|
|
511,098
|
|
|
|
114,888
|
|
|
|
148,556
|
|
|
|
206,920
|
|
|
|
727,579
|
|
|
|
1,709,041
|
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,261
|
|
Elimination of intersegment balances
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(706,492
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,049,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-48
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2014
|
|
|
|
Exploration
and
Production
|
|
|
Refining
and
Chemicals
|
|
|
Marketing
|
|
|
Natural
Gas and
Pipeline
|
|
|
Head
Office and
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Revenue
|
|
|
777,574
|
|
|
|
846,082
|
|
|
|
1,938,501
|
|
|
|
284,262
|
|
|
|
3,027
|
|
|
|
3,849,446
|
|
Less: intersegment sales
|
|
|
(629,186
|
)
|
|
|
(668,002
|
)
|
|
|
(244,226
|
)
|
|
|
(24,398
|
)
|
|
|
(672
|
)
|
|
|
(1,566,484
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers
|
|
|
148,388
|
|
|
|
178,080
|
|
|
|
1,694,275
|
|
|
|
259,864
|
|
|
|
2,355
|
|
|
|
2,282,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
(129,221
|
)
|
|
|
(21,533
|
)
|
|
|
(11,709
|
)
|
|
|
(12,804
|
)
|
|
|
(2,196
|
)
|
|
|
(177,463
|
)
|
Including: Impairment losses of property, plant and equipment
|
|
|
(3,684
|
)
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
(3,685
|
)
|
Profit / (loss) from operations
|
|
|
186,897
|
|
|
|
(23,560
|
)
|
|
|
5,421
|
|
|
|
13,126
|
|
|
|
(12,051
|
)
|
|
|
169,833
|
|
Finance costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,020
|
|
Exchange loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,333
|
)
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,596
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23,319
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net finance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,036
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit of associates and joint ventures
|
|
|
3,476
|
|
|
|
36
|
|
|
|
31
|
|
|
|
4,692
|
|
|
|
2,727
|
|
|
|
10,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
156,759
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(37,731
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
119,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets
|
|
|
1,216,424
|
|
|
|
339,374
|
|
|
|
365,433
|
|
|
|
491,079
|
|
|
|
1,515,043
|
|
|
|
3,927,353
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,955
|
|
Investments in associates and joint ventures
|
|
|
42,283
|
|
|
|
1,118
|
|
|
|
10,249
|
|
|
|
41,439
|
|
|
|
21,858
|
|
|
|
116,947
|
|
Elimination of intersegment
balances
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,654,782
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,405,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
221,479
|
|
|
|
30,965
|
|
|
|
5,616
|
|
|
|
32,919
|
|
|
|
750
|
|
|
|
291,729
|
|
Segment liabilities
|
|
|
505,029
|
|
|
|
136,492
|
|
|
|
169,804
|
|
|
|
172,402
|
|
|
|
688,203
|
|
|
|
1,671,930
|
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,541
|
|
Elimination of intersegment balances
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(646,779
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,087,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-49
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|
|
|
Exploration
and
Production
|
|
|
Refining
and
Chemicals
|
|
|
Marketing
|
|
|
Natural
Gas and
Pipeline
|
|
|
Head
Office and
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Revenue
|
|
|
783,694
|
|
|
|
871,815
|
|
|
|
1,946,806
|
|
|
|
232,751
|
|
|
|
2,687
|
|
|
|
3,837,753
|
|
Less: intersegment sales
|
|
|
(618,851
|
)
|
|
|
(681,687
|
)
|
|
|
(263,100
|
)
|
|
|
(15,360
|
)
|
|
|
(631
|
)
|
|
|
(1,579,629
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from external customers
|
|
|
164,843
|
|
|
|
190,128
|
|
|
|
1,683,706
|
|
|
|
217,391
|
|
|
|
2,056
|
|
|
|
2,258,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
(115,528
|
)
|
|
|
(22,478
|
)
|
|
|
(11,280
|
)
|
|
|
(11,838
|
)
|
|
|
(2,241
|
)
|
|
|
(163,365
|
)
|
Including: Impairment losses of property, plant and equipment
|
|
|
(10
|
)
|
|
|
(3,830
|
)
|
|
|
(6
|
)
|
|
|
(11
|
)
|
|
|
|
|
|
|
(3,857
|
)
|
Profit/ (loss) from operations
|
|
|
189,698
|
|
|
|
(24,392
|
)
|
|
|
7,562
|
|
|
|
28,888
|
|
|
|
(13,114
|
)
|
|
|
188,642
|
|
Finance costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,157
|
|
Exchange loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,105
|
)
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,222
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23,081
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net finance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20,807
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit of associates and joint ventures
|
|
|
4,688
|
|
|
|
(6
|
)
|
|
|
509
|
|
|
|
2,490
|
|
|
|
2,547
|
|
|
|
10,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
178,063
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35,789
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets
|
|
|
1,162,903
|
|
|
|
366,602
|
|
|
|
372,049
|
|
|
|
437,900
|
|
|
|
1,509,573
|
|
|
|
3,849,027
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,226
|
|
Investments in associates and joint ventures
|
|
|
46,366
|
|
|
|
1,023
|
|
|
|
10,606
|
|
|
|
38,621
|
|
|
|
20,084
|
|
|
|
116,700
|
|
Elimination of intersegment
balances
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,634,843
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,342,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
226,376
|
|
|
|
26,671
|
|
|
|
7,101
|
|
|
|
57,439
|
|
|
|
1,109
|
|
|
|
318,696
|
|
Segment liabilities
|
|
|
487,745
|
|
|
|
151,415
|
|
|
|
191,534
|
|
|
|
174,808
|
|
|
|
661,173
|
|
|
|
1,666,675
|
|
Other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
84,884
|
|
Elimination of intersegment balances
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(679,384
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,072,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-50
PETROCHINA COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Geographical information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
Non-current assets
(b)
|
|
Year Ended December 31,
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Mainland China
|
|
|
1,185,189
|
|
|
|
1,479,183
|
|
|
|
1,503,897
|
|
|
|
1,796,288
|
|
|
|
1,738,389
|
|
|
|
1,674,106
|
|
Other
|
|
|
540,239
|
|
|
|
803,779
|
|
|
|
754,227
|
|
|
|
228,416
|
|
|
|
255,552
|
|
|
|
221,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,725,428
|
|
|
|
2,282,962
|
|
|
|
2,258,124
|
|
|
|
2,024,704
|
|
|
|
1,993,941
|
|
|
|
1,895,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Elimination of intersegment balances represents elimination of intersegment accounts and investments.
|
(b)
|
Non-current assets mainly include non-current assets other than financial instruments and deferred tax assets.
|
38
|
APPROVAL OF FINANCIAL STATEMENTS
|
The financial statements were approved by the Board of
Directors on April 28, 2016.
39
|
EVENTS AFTER THE REPORTING PERIOD
|
Pursuant to the Notice on Issues Concerning Further
Improving the Refined Oil Price for the Establishment of the Refined Oil Price Mechanism (
) (Fa Gai Jia Ge [2016] No. 64), it is prescribed that commencing from January 13, 2016, a price floor of US$40 per barrel shall be set for the downward adjustment of the refined oil price and a reserve shall also be
created for risks associated with the adjustment and control of oil prices. Accordingly, when the international crude oil price drops to US$40 per barrel or below, i.e. the adjustment price floor, the refined oil price in China shall no longer be
adjusted downwards and all unadjusted amount shall be allocated to the reserve abovementioned for use for the purpose of energy saving or reduction of emission, improving the oil quality and securing a safe supply of refined oil. When the
international crude oil price surges to US$130 per barrel or above, appropriate financial and taxation policies shall be adopted to ensure the production and supply of refined oil but the refined oil price in China shall remain unadjusted or shall
be slightly adjusted upwards in principle. There shall also be a liberalization of the ex-factory price of the liquefied petroleum gas.
F-51
PETROCHINA COMPANY LIMITED
SUPPLEMENTARY INFORMATION ON OIL AND GAS EXPLORATION
AND PRODUCTION ACTIVITIES (UNAUDITED)
(All amounts in millions, except for the per share data and otherwise stated)
In accordance with the Accounting Standards Update 2010-03 Extractive
Activities Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures (an update of Accounting Standards Codification Topic 932 Extractive Activities Oil and Gas or ASC 932) issued by the Financial
Accounting Standards Board and corresponding disclosure requirements of the U.S. Securities and Exchange Commission, this section provides supplemental information on oil and gas exploration and development; and results of operation related to oil
and gas producing activities of the Company and its subsidiaries (the Group) and also the Groups investments that are accounted for using the equity method of accounting.
The supplemental information presented below covers the Groups proved oil and gas reserves estimates, historical cost information
pertaining to capitalized costs, costs incurred for property acquisitions, exploration and development activities, result of operations for oil and gas producing activities, standardized measure of estimated discounted future net cash flows and
changes in estimated discounted future net cash flows.
The Other geographic area includes oil and gas producing activities
principally in countries such as Kazakhstan, Venezuela and Indonesia. As the Group does not have significant reserves held through its investments accounted for using the equity method, information presented in relation to these equity method
investments is presented in the aggregate.
Proved Oil and Gas Reserve Estimates
Proved oil and gas reserves cannot be measured exactly. Reserve estimates are based on many factors related to reservoir performance that
require evaluation by the engineers interpreting the available data, as well as price and other economic factors. The reliability of these estimates at any point in time depends on both the quality and quantity of the technical and economic data,
and the production performance of the reservoirs as well as engineering judgment. Consequently, reserve estimates are subject to revision as additional data become available during the producing life of a reservoir. When a commercial reservoir is
discovered, proved reserves are initially determined based on limited data from the first well or wells. Subsequent data may better define the extent of the reservoir and additional production performance, well tests and engineering studies will
likely improve the reliability of the reserve estimate. The evolution of technology may also result in the application of improved recovery techniques such as supplemental or enhanced recovery projects, or both, which have the potential to increase
reserves.
Proved oil and gas reserves are the estimated quantities of crude oil and natural gas, which, by analysis of geoscience and
engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at
which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether the estimate is a deterministic estimate or probabilistic estimate.
Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be
the average price during the 12-month period before the ending date of the period covered by this report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined
by contractual arrangements, excluding escalations based upon future conditions. The costs shall be that prevailing at the end of the period.
F-52
PETROCHINA COMPANY LIMITED
SUPPLEMENTARY INFORMATION ON OIL AND GAS EXPLORATION
AND PRODUCTION ACTIVITIES (UNAUDITED) (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Proved developed oil and gas reserves are proved reserves that can be
expected to be recovered:
a. Through existing wells with existing equipment and operating methods or in which the cost of the required
equipment is relatively minor compared with the cost of a new well.
b. Through installed extraction equipment and infrastructure
operational at the time of the reserves estimate if the extraction is by means not involving a well.
Proved undeveloped oil and gas
reserves are proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.
The taxes, fees and royalty in China are domestic tax schemes and are paid in cash to PRC authorities. The proved reserves include quantities
that are ultimately produced and sold to pay these taxes, fees and royalty.
Proved reserve estimates as of December 31, 2015 and 2014
were based on reports prepared by DeGolyer and MacNaughton, Gaffney, Cline & Associates, McDaniel & Associates, Ryder Scott and GLJ independent engineering consultants. Proved reserve estimates as of December 31, 2013 were based on reports
prepared by DeGolyer and MacNaughton, Gaffney, Cline & Associates, McDaniel & Associates and GLJ independent engineering consultants.
Estimated quantities of net proved crude oil and condensate and natural gas reserves and of changes in net quantities of proved developed and
undeveloped reserves for each of the periods indicated are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil and
Condensate
|
|
|
Natural
Gas
|
|
|
Total All
products
|
|
|
|
(million
barrels)
|
|
|
(billion
cubic feet)
|
|
|
(million
barrels of oil
equivalent)
|
|
Proved developed and undeveloped reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves at December 31, 2012
|
|
|
11,018
|
|
|
|
67,581
|
|
|
|
22,282
|
|
Changes resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revisions of previous estimates
|
|
|
(124
|
)
|
|
|
(6,415
|
)
|
|
|
(1,193
|
)
|
Improved recovery
|
|
|
84
|
|
|
|
|
|
|
|
84
|
|
Extensions and discoveries
|
|
|
775
|
|
|
|
10,959
|
|
|
|
2,601
|
|
Production
|
|
|
(933
|
)
|
|
|
(2,802
|
)
|
|
|
(1,400
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves at December 31, 2013
|
|
|
10,820
|
|
|
|
69,323
|
|
|
|
22,374
|
|
Changes resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revisions of previous estimates
|
|
|
(16
|
)
|
|
|
(2,707
|
)
|
|
|
(467
|
)
|
Improved recovery
|
|
|
94
|
|
|
|
|
|
|
|
94
|
|
Extensions and discoveries
|
|
|
646
|
|
|
|
7,511
|
|
|
|
1,898
|
|
Sales
|
|
|
(5
|
)
|
|
|
|
|
|
|
(5
|
)
|
Production
|
|
|
(946
|
)
|
|
|
(3,029
|
)
|
|
|
(1,451
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves at December 31, 2014
|
|
|
10,593
|
|
|
|
71,098
|
|
|
|
22,443
|
|
Changes resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Revisions of previous estimates
|
|
|
(1,663
|
)
|
|
|
(206
|
)
|
|
|
(1,697
|
)
|
Improved recovery
|
|
|
106
|
|
|
|
|
|
|
|
106
|
|
Extensions and discoveries
|
|
|
457
|
|
|
|
9,764
|
|
|
|
2,084
|
|
Production
|
|
|
(972
|
)
|
|
|
(3,131
|
)
|
|
|
(1,494
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserves at December 31, 2015
|
|
|
8,521
|
|
|
|
77,525
|
|
|
|
21,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-53
PETROCHINA COMPANY LIMITED
SUPPLEMENTARY INFORMATION ON OIL AND GAS EXPLORATION
AND PRODUCTION ACTIVITIES (UNAUDITED) (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil and
Condensate
|
|
|
Natural
Gas
|
|
|
Total All
products
|
|
|
|
(million
barrels)
|
|
|
(billion
cubic feet)
|
|
|
(million
barrels of oil
equivalent)
|
|
Proved developed reserves at:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
7,219
|
|
|
|
32,813
|
|
|
|
12,688
|
|
December 31, 2014
|
|
|
7,253
|
|
|
|
35,824
|
|
|
|
13,224
|
|
December 31, 2015
|
|
|
6,196
|
|
|
|
40,406
|
|
|
|
12,930
|
|
Proved undeveloped reserves at:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
3,601
|
|
|
|
36,510
|
|
|
|
9,686
|
|
December 31, 2014
|
|
|
3,340
|
|
|
|
35,274
|
|
|
|
9,219
|
|
December 31, 2015
|
|
|
2,325
|
|
|
|
37,119
|
|
|
|
8,512
|
|
Equity method investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of proved developed and undeveloped reserves of associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
494
|
|
|
|
416
|
|
|
|
563
|
|
December 31, 2014
|
|
|
500
|
|
|
|
449
|
|
|
|
575
|
|
December 31, 2015
|
|
|
504
|
|
|
|
354
|
|
|
|
563
|
|
At December 31, 2015, total proved developed and undeveloped reserves of the Group and equity method
investments is 22,005 million barrels of oil equivalent (December 31, 2014: 23,017 million barrels of oil equivalent, December 31, 2013: 22,937 million barrels of oil equivalent), comprising 9,025 million barrels of crude oil and condensate
(December 31, 2014: 11,093 million barrels, December 31, 2013: 11,314 million barrels) and 77,879 billion cubic feet of natural gas (December 31, 2014: 71,547 billion cubic feet, December 31, 2013: 69,739 billion cubic feet).
At December 31, 2015, 7,650 million barrels (December 31, 2014: 9,735 million barrels, December 31, 2013: 9,977 million barrels) of crude oil
and condensate and 75,858 billion cubic feet (December 31, 2014: 69,836 billion cubic feet, December 31, 2013: 68,085 billion cubic feet) of natural gas proved developed and undeveloped reserves of the Group are located within Mainland China, and
871 million barrels (December 31, 2014: 858 million barrels, December 31, 2013: 843 million barrels) of crude oil and condensate and 1,667 billion cubic feet (December 31, 2014: 1,262 billion cubic feet, December 31, 2013: 1,238 billion cubic feet)
of natural gas proved developed and undeveloped reserves of the Group are located overseas.
Capitalized Costs
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
RMB
|
|
|
RMB
|
|
The Group
|
|
|
|
|
|
|
|
|
Property costs and producing assets
|
|
|
1,421,608
|
|
|
|
1,331,810
|
|
Support facilities
|
|
|
378,279
|
|
|
|
356,344
|
|
Construction-in-progress
|
|
|
109,007
|
|
|
|
113,247
|
|
|
|
|
|
|
|
|
|
|
Total capitalized costs
|
|
|
1,908,894
|
|
|
|
1,801,401
|
|
Accumulated depreciation, depletion and amortization
|
|
|
(929,554
|
)
|
|
|
(807,712
|
)
|
|
|
|
|
|
|
|
|
|
Net capitalized costs
|
|
|
979,340
|
|
|
|
993,689
|
|
|
|
|
|
|
|
|
|
|
Equity method investments
|
|
|
|
|
|
|
|
|
Share of net capitalized costs of associates and joint ventures
|
|
|
30,418
|
|
|
|
35,092
|
|
|
|
|
|
|
|
|
|
|
F-54
PETROCHINA COMPANY LIMITED
SUPPLEMENTARY INFORMATION ON OIL AND GAS EXPLORATION
AND PRODUCTION ACTIVITIES (UNAUDITED) (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Costs Incurred for Property Acquisitions, Exploration and Development Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
Mainland
China
|
|
|
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
The Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Property acquisition costs
|
|
|
|
|
|
|
456
|
|
|
|
456
|
|
Exploration costs
|
|
|
28,542
|
|
|
|
1,011
|
|
|
|
29,553
|
|
Development costs
|
|
|
100,328
|
|
|
|
18,611
|
|
|
|
118,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
128,870
|
|
|
|
20,078
|
|
|
|
148,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of costs of property acquisition, exploration and development of associates and joint
ventures
|
|
|
|
|
|
|
2,798
|
|
|
|
2,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
Mainland
China
|
|
|
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
The Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Property acquisition costs
|
|
|
|
|
|
|
20,406
|
|
|
|
20,406
|
|
Exploration costs
|
|
|
34,457
|
|
|
|
1,954
|
|
|
|
36,411
|
|
Development costs
|
|
|
126,097
|
|
|
|
34,117
|
|
|
|
160,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
160,554
|
|
|
|
56,477
|
|
|
|
217,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of costs of property acquisition, exploration and development of associates and joint
ventures
|
|
|
|
|
|
|
5,292
|
|
|
|
5,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
Mainland
China
|
|
|
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
The Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Property acquisition costs
|
|
|
|
|
|
|
17,701
|
|
|
|
17,701
|
|
Exploration costs
|
|
|
38,051
|
|
|
|
5,238
|
|
|
|
43,289
|
|
Development costs
|
|
|
137,783
|
|
|
|
25,563
|
|
|
|
163,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
175,834
|
|
|
|
48,502
|
|
|
|
224,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of costs of property acquisition, exploration and development of associates and joint
ventures
|
|
|
|
|
|
|
3,036
|
|
|
|
3,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-55
PETROCHINA COMPANY LIMITED
SUPPLEMENTARY INFORMATION ON OIL AND GAS EXPLORATION
AND PRODUCTION ACTIVITIES (UNAUDITED) (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Results of Operations for Oil and Gas Producing Activities
The results of operations for oil and gas producing activities for the years ended December 31, 2015, 2014 and 2013 are presented below.
Revenue includes sales to third parties and inter-segment sales (at arms-length prices), net of value-added taxes. Resource tax, crude oil special gain levy and other taxes are included in taxes other than income taxes.
Income taxes are computed using the applicable statutory tax rate, reflecting tax deductions and tax credits for the respective years ended.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
Mainland China
|
|
|
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
The Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to third parties
|
|
|
41,980
|
|
|
|
35,983
|
|
|
|
77,963
|
|
Inter-segment sales
|
|
|
292,656
|
|
|
|
4,696
|
|
|
|
297,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
334,636
|
|
|
|
40,679
|
|
|
|
375,315
|
|
Production costs excluding taxes
|
|
|
(114,848
|
)
|
|
|
(9,177
|
)
|
|
|
(124,025
|
)
|
Exploration expenses
|
|
|
(17,045
|
)
|
|
|
(1,335
|
)
|
|
|
(18,380
|
)
|
Depreciation, depletion and amortization
|
|
|
(112,566
|
)
|
|
|
(22,753
|
)
|
|
|
(135,319
|
)
|
Taxes other than income taxes
|
|
|
(23,727
|
)
|
|
|
(5,050
|
)
|
|
|
(28,777
|
)
|
Accretion expense
|
|
|
(5,720
|
)
|
|
|
(230
|
)
|
|
|
(5,950
|
)
|
Income taxes
|
|
|
(15,629
|
)
|
|
|
(1,290
|
)
|
|
|
(16,919
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations from producing activities
|
|
|
45,101
|
|
|
|
844
|
|
|
|
45,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit for producing activities of associates and joint ventures
|
|
|
|
|
|
|
(4,188
|
)
|
|
|
(4,188
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total of the Group and equity method investments results of operations for producing
activities
|
|
|
45,101
|
|
|
|
(3,344
|
)
|
|
|
41,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
Mainland China
|
|
|
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
The Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to third parties
|
|
|
87,676
|
|
|
|
43,260
|
|
|
|
130,936
|
|
Inter-segment sales
|
|
|
466,051
|
|
|
|
9,205
|
|
|
|
475,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
553,727
|
|
|
|
52,465
|
|
|
|
606,192
|
|
Production costs excluding taxes
|
|
|
(116,564
|
)
|
|
|
(9,739
|
)
|
|
|
(126,303
|
)
|
Exploration expenses
|
|
|
(20,787
|
)
|
|
|
(1,277
|
)
|
|
|
(22,064
|
)
|
Depreciation, depletion and amortization
|
|
|
(101,168
|
)
|
|
|
(17,522
|
)
|
|
|
(118,690
|
)
|
Taxes other than income taxes
|
|
|
(102,506
|
)
|
|
|
(10,367
|
)
|
|
|
(112,873
|
)
|
Accretion expense
|
|
|
(5,220
|
)
|
|
|
(186
|
)
|
|
|
(5,406
|
)
|
Income taxes
|
|
|
(41,119
|
)
|
|
|
(4,159
|
)
|
|
|
(45,278
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations from producing activities
|
|
|
166,363
|
|
|
|
9,215
|
|
|
|
175,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit for producing activities of associates and joint ventures
|
|
|
|
|
|
|
6,940
|
|
|
|
6,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total of the Group and equity method investments results of operations for producing
activities
|
|
|
166,363
|
|
|
|
16,155
|
|
|
|
182,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-56
PETROCHINA COMPANY LIMITED
SUPPLEMENTARY INFORMATION ON OIL AND GAS EXPLORATION
AND PRODUCTION ACTIVITIES (UNAUDITED) (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
Mainland China
|
|
|
Other
|
|
|
Total
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
The Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to third parties
|
|
|
82,422
|
|
|
|
59,120
|
|
|
|
141,542
|
|
Intersegment sales
|
|
|
471,514
|
|
|
|
2,069
|
|
|
|
473,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
553,936
|
|
|
|
61,189
|
|
|
|
615,125
|
|
Production costs excluding taxes
|
|
|
(108,302
|
)
|
|
|
(9,039
|
)
|
|
|
(117,341
|
)
|
Exploration expenses
|
|
|
(21,548
|
)
|
|
|
(3,753
|
)
|
|
|
(25,301
|
)
|
Depreciation, depletion and amortization
|
|
|
(88,569
|
)
|
|
|
(15,739
|
)
|
|
|
(104,308
|
)
|
Taxes other than income taxes
|
|
|
(110,350
|
)
|
|
|
(17,648
|
)
|
|
|
(127,998
|
)
|
Accretion expense
|
|
|
(4,505
|
)
|
|
|
(185
|
)
|
|
|
(4,690
|
)
|
Income taxes
|
|
|
(42,352
|
)
|
|
|
(5,325
|
)
|
|
|
(47,677
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of operations from producing activities
|
|
|
178,310
|
|
|
|
9,500
|
|
|
|
187,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity method investments
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit for producing activities of associates and joint ventures
|
|
|
|
|
|
|
8,392
|
|
|
|
8,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total of the Group and equity method investments results of operations for producing
activities
|
|
|
178,310
|
|
|
|
17,892
|
|
|
|
196,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standardized Measure of Discounted Future Net Cash Flows
The standardized measure of discounted future net cash flows related to proved oil and gas reserves at December 31, 2015, 2014 and 2013 is
based on the prices used in estimating the Groups proved oil and gas reserves, year-end costs, currently enacted tax rates related to existing proved oil and gas reserves and a 10% annual discount factor. Future cash inflows are
net of value-added taxes. Corporate income taxes are included in future income tax expense. Other taxes are included in future production costs as production taxes.
The standardized measure of discounted future net cash flows related to proved oil and gas reserves at December 31, 2015, 2014 and 2013 is as
follows:
|
|
|
|
|
|
|
RMB
|
|
The Group
|
|
|
|
|
At December 31, 2015
|
|
|
|
|
Future cash inflows
|
|
|
5,443,534
|
|
Future production costs
|
|
|
(2,181,423
|
)
|
Future development costs
|
|
|
(444,553
|
)
|
Future income tax expense
|
|
|
(567,946
|
)
|
|
|
|
|
|
Future net cash flows
|
|
|
2,249,612
|
|
Discount at 10% for estimated timing of cash flows
|
|
|
(1,188,237
|
)
|
|
|
|
|
|
Standardized measure of discounted future net cash flows
|
|
|
1,061,375
|
|
|
|
|
|
|
F-57
PETROCHINA COMPANY LIMITED
SUPPLEMENTARY INFORMATION ON OIL AND GAS EXPLORATION
AND PRODUCTION ACTIVITIES (UNAUDITED) (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
|
|
|
|
|
|
|
RMB
|
|
The Group
|
|
|
|
|
At December 31, 2014
|
|
|
|
|
Future cash inflows
|
|
|
8,225,339
|
|
Future production costs
|
|
|
(3,650,129
|
)
|
Future development costs
|
|
|
(527,848
|
)
|
Future income tax expense
|
|
|
(863,348
|
)
|
|
|
|
|
|
Future net cash flows
|
|
|
3,184,014
|
|
Discount at 10% for estimated timing of cash flows
|
|
|
(1,589,255
|
)
|
|
|
|
|
|
Standardized measure of discounted future net cash flows
|
|
|
1,594,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMB
|
|
The Group
|
|
|
|
|
At December 31, 2013
|
|
|
|
|
Future cash inflows
|
|
|
8,369,464
|
|
Future production costs
|
|
|
(3,980,886
|
)
|
Future development costs
|
|
|
(492,655
|
)
|
Future income tax expense
|
|
|
(812,290
|
)
|
|
|
|
|
|
Future net cash flows
|
|
|
3,083,633
|
|
Discount at 10% for estimated timing of cash flows
|
|
|
(1,532,368
|
)
|
|
|
|
|
|
Standardized measure of discounted future net cash flows
|
|
|
1,551,265
|
|
|
|
|
|
|
At December 31, 2015, RMB 1,023,933 (December 31, 2014: RMB 1,520,307, December 31, 2013: RMB 1,473,852)
of standardized measure of discounted future net cash flows related to proved oil and gas reserves located within mainland China and RMB 37,442 (December 31, 2014: RMB 74,452, December 31, 2013: RMB 77,413) of standardized measure of discounted
future net cash flows related to proved oil and gas reserves located overseas.
Share of standardized measure of discounted future net
cash flows of associates and joint ventures:
|
|
|
|
|
December 31, 2015
|
|
|
19,712
|
|
December 31, 2014
|
|
|
37,118
|
|
December 31, 2013
|
|
|
39,187
|
|
F-58
PETROCHINA COMPANY LIMITED
SUPPLEMENTARY INFORMATION ON OIL AND GAS EXPLORATION
AND PRODUCTION ACTIVITIES (UNAUDITED) (Continued)
(All amounts in millions, except for the per share data and otherwise stated)
Changes in Standardized Measure of Discounted Future Net Cash Flows
Changes in the standardized measure of discounted net cash flows for the Group for each of the years ended December 31, 2015, 2014 and 2013 are
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
The Group
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of the year
|
|
|
1,595,704
|
|
|
|
1,551,265
|
|
|
|
1,679,179
|
|
Sales and transfers of oil and gas produced, net of production costs
|
|
|
(209,600
|
)
|
|
|
(352,016
|
)
|
|
|
(350,512
|
)
|
Net changes in prices and production costs and other
|
|
|
(716,150
|
)
|
|
|
62,017
|
|
|
|
(216,677
|
)
|
Extensions, discoveries and improved recovery
|
|
|
157,220
|
|
|
|
189,828
|
|
|
|
265,039
|
|
Development costs incurred
|
|
|
49,064
|
|
|
|
59,075
|
|
|
|
70,183
|
|
Revisions of previous quantity estimates
|
|
|
(121,809
|
)
|
|
|
(51,424
|
)
|
|
|
(117,817
|
)
|
Accretion of discount
|
|
|
172,090
|
|
|
|
160,293
|
|
|
|
178,064
|
|
Net change in income taxes
|
|
|
134,856
|
|
|
|
(23,786
|
)
|
|
|
43,806
|
|
Sales
|
|
|
|
|
|
|
(493
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of the year
|
|
|
1,061,375
|
|
|
|
1,594,759
|
|
|
|
1,551,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-59