Annual Report 2012

Financial Statements
Supplemental Information on Oil and
Gas Producing Activities (Unaudited)
(D) SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED)
In accordance with the Accounting Standards Update 2010-03, “Extractive Activities – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and
Disclosures” (“ASU 2010-03”), issued by the Financial Accounting Standards Board of the United States, this section provides supplemental information
on oil and gas exploration and producing activities of the Group at 31 December 2012 and 2011, and for the years then ended in the following six
separate tables. Tables I through III provide historical cost information under IFRS pertaining to capitalised costs related to oil and gas producing
activities; costs incurred in oil and gas exploration and development; and results of operation related to oil and gas producing activities. Tables IV
through VI present information on the Group’s estimated net proved reserve quantities; standardised measure of discounted future net cash flows; and
changes in the standardised measure of discounted cash flows.
Tables I to VI of supplemental information on oil and gas producing activities of the Group set out below represent information of the Company and its
consolidated subsidiaries. The oil and gas producing activities of the equity method investee of the Group are insignificant and have not been combined
with the information included herein.
Table I: Capitalised costs related to oil and gas producing activities
192
Annual Report 2012 CHINA PETROLEUM & CHEMICAL CORPORATION
2012 2011
RMB millions RMB millions
Property cost, wells and related equipment and facilities 451,288 469,178
Supporting equipment and facilities 158,749 82,289
Uncompleted wells, equipment and facilities 57,124 37,708
Total capitalised costs 667,161 589,175
Accumulated depreciation, depletion, amortisation and impairment losses (316,445) (275,348)
Net capitalised costs 350,716 313,827
Table II: Costs incurred in oil and gas exploration and development
2012 2011
RMB millions RMB millions
Exploration 22,637 20,722
Development 71,168 51,368
Total costs incurred 93,805 72,090
Table III: Results of operations related to oil and gas producing activities
2012 2011
RMB millions RMB millions
Revenues
Sales 53,270 46,901
Transfers 174,251 172,791
227,521 219,692
Production costs excluding taxes (47,467) (42,505)
Exploration expenses (15,533) (13,341)
Depreciation, depletion, amortisation and impairment losses (40,289) (37,608)
Taxes other than income tax (39,784) (43,647)
Profit before taxation 84,448 82,591
Income tax expense (22,953) (22,141)
Results of operation from producing activities 61,495 60,450
The results of operations for producing activities for the years ended 31 December 2012 and 2011 are shown above. Revenues include sales to
unaffiliated parties and transfers (essentially at third-party sales prices) to other segments of the Group. All revenues reported in this table do not
include royalties to others as there were none. Income taxes are based on statutory tax rates, reflecting allowable deductions and tax credits. General
corporate overhead and interest income and expense are excluded from the results of operations.