Annual Report 2012

Financial Statements (PRC)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2012
12 FIXED ASSETS (Continued)
Impairment losses on long-lived assets for the year ended 31 December 2012 primarily represent impairment losses recognised for the exploration
and production (“E&P”) segment of RMB 1,006 million (2011: RMB 2,153 million) of property, plant and equipment. The primary factor resulting in
the E&P segment impairment losses for the year ended 31 December 2012 was high operating and development costs for certain small oil fields.
The carrying values of these E&P properties were written down to respective 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 12.5% (2011: 12.0%). 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 asset
impairment.
At 31 December 2012 and 2011, the Group and the Company had no individually significant fixed assets which were pledged.
At 31 December 2012 and 2011, the Group and the Company had no individually significant fixed assets which were temporarily idle or pending for
disposal.
At 31 December 2012 and 2011, the Group and the Company had no individually significant fully depreciated fixed assets which were still in use.
13 CONSTRUCTION IN PROGRESS
The Group
Exploration Marketing
and and
production Refining distribution Chemicals Others Total
RMB millions RMB millions RMB millions RMB millions RMB millions RMB millions
Cost/valuation:
Balance at 1 January 2012 37,708 21,923 36,084 14,277 2,042 112,034
Additions for the year 85,988 35,397 25,862 20,993 1,995 170,235
Reclassification — 275 — (275) — —
Dry hole costs written off (7,988) — — — — (7,988)
Transferred to fixed assets (58,201) (19,615) (12,318) (6,625) (1,024) (97,783)
Other decreases (383) (698) (5,238) (127) (352) (6,798)
Balance at 31 December 2012
Provision for impairment losses:
57,124 37,282 44,390 28,243 2,661 169,700
Balance at 1 January/31 December 2012
Net book value:
— 516 207 — — 723
Balance at 31 December 2012 57,124 36,766 44,183 28,243 2,661 168,977
Balance at 31 December 2011 37,708 21,407 35,877 14,277 2,042 111,311
At 31 December 2012, major construction projects of the Group are as follows:
Balance Net Balance
Accumulated
interest
capitalised
at 1 additions at 31 Percentage at 31
Budgeted January for the December of December
Project name amount 2012 year 2012 Completion Source of funding 2012
Wuhan 800,000 tonnes per year Ethylene
RMB millions RMB millions RMB millions RMB millions % RMB millions
Construction Project
Anqing Sour Crude Oil Processing Adaptation
16,563 8,533 6,201 14,734 89% Bank loans & self-financing 715
Revamping and Oil Quality Upgrading Project 6,769 2,212 2,943 5,155 76% Bank loans & self-financing 170
Jinling Oil Quality Upgrading Project 4,989 1,980 1,627 3,607 85% Bank loans & self-financing 69
Maoming Oil Quality Upgrading Project
Yangzi Oil Quality Upgrading and Inferior Crude Oil
4,414 945 2,165 3,110 80% Bank loans & self-financing 91
Reconstruction Project 7,865 577 2,017 2,594 34% Bank loans & self-financing 23
102
Annual Report 2012 CHINA PETROLEUM & CHEMICAL CORPORATION