REG - China Pet &Chem Corp - Report on Payments to Govts

China Petroleum & ChemicalAnnouncement

31/05/2019 09:40

RNS Number : 7463A
China Petroleum & Chemical Corp
31 May 2019
 


 
China Petroleum & Chemical Corporation
Report on Payments to Governments for 2018
1.       Introduction
Section 4.3А of the UK Disclosure Rules and Transparency Rules (DTR 4.3А) requires the extractive sector companies whose transferable securities are admitted to trading on a regulated market to publicly disclose payments made to the governments of those countries where they carry out extractive operations.
DTR 4.3А apply without limitation to companies incorporated outside the UK but that have transferable securities traded on the London Stock Exchange (LSE).
China Petroleum & Chemical Corporation (Sinopec Corp.) consolidated Report on payments to governments for 2018 (the Report) is presented below pursuant to DTR 4.3А. It includes Payments made by Sinopec Corp.'s Extractive Companies as defined below, for the benefit of each government in the countries in which these companies carry out their activities. The Report also provides details on the total amount of such payments by type, specific project and government paid.
Where the amount of payment made during the period for a specific project or country are less than £86,000 or the equivalent amount in another currency, such payment is not disclosed in the Report.
2.       Reporting principles
Definitions
Extractive Companies: China Petroleum & Chemical Corporation and its subsidiaries whose activities consist, in whole or in part, of the exploration, prospection, discovery, development and extraction of minerals, crude oil and natural gas, amongst others, fully consolidated by Sinopec Corp. in accordance with International Financial Reporting Standards (IFRS).
Payment: a single payment or multiple interconnected payments, whether in money or in kind, for extractives activities.
The payment types included in this Report:
Production Entitlement: host Government's share of production. This payment is generally made in kind. For the financial year of 2018, there were no reportable Production Entitlement payments to Governments.
Taxes: taxes and levies paid on income, production or profits, excluding taxes levied on consumption such as value added tax, personal income taxes and sales taxes. Regarding taxes paid in the People's Republic of China (PRC), the Report includes Income Tax, Special Oil Income Levy and Resource Tax.
Royalties: products or monetary value payment for the mining rights to extract oil and gas resources.
Dividends: dividends paid to host Government, other than dividends paid to Government as an ordinary shareholder unless they are paid in lieu of a production entitlement or royalty. For the financial year of 2018, there were no reportable Dividend payments to Governments.
Signature, Discovery and Production Bonuses: bonuses paid for and in consideration of signature, discovery, production, awards, grants and transfers of extraction rights; bonuses related to achievement or failure to achieve certain production levels or targets, and the discovery of additional mineral reserves or deposits. For the financial year of 2018, there were no reportable Signature, Discovery and Production Bonuses payments to Governments.
Licence and Other Fees: licence fees, rental fees, entry fees and other considerations for licences and/or concessions that are paid for access to the area where the extractive activities will be conducted. Regarding Licence and other fees paid in PRC, the Report includes Exploration License Fee and Production License Fee.
Infrastructure Improvements: payments for local infrastructure development, including the improvement of infrastructure, except where the infrastructure is exclusively used for operational purposes. For the financial year of 2018, there were no reportable Infrastructure Improvement payments to Governments.
Government: any national, regional or local authority of a country or territory, or any department, agency or undertaking controlled by that authority.
Project: operational activities governed by a single contract, licence, lease, concession or similar legal agreement that form the basis for payment liabilities with a Government. If multiple such agreements are substantially interconnected, they are considered as a single Project.
Reporting currency
All amounts presented in the Report are stated in Reminbi (RMB). Payments made to Governments in US Dollars were translated into the equivalent RMB amount using an average exchange rate during the reporting period of 2018.
In-kind payments
Production Entitlement and Royalties paid in kind owed to Governments pursuant to legal or contractual provisions (not booked in the Extractive Companies' accounts pursuant to the accounting standards) are reported in proportion to the interest held in the Project. Payments in kind are estimated at fair value which corresponds to the contractual price of oil and gas, market price (if available) or an appropriate benchmark price. These prices may be calculated on an averaged basis over a given period.
Operatorship
Payments made by the Extractive Companies directly to a Government arising from a Project are reported in the full amount, regardless of whether the Extractive Companies are the Operators. Such payments are reported in the full amount even where the Extractive Companies acting as Operators are proportionally reimbursed by their non-operating venture partners.
 




 
3. Summary Report
                                                                                                            Unit: RMB million



Country


Total Amount of Payments


Taxes


Royalties


Licence and Other Fees




China


8,676


8,505


-


171




Angola


671


671


-


-



 
4. Reporting by Subsidiary/Project
                                                                                                              Unit: RMB million



Subsidiary/Project


Total Amount of Payments


Taxes


Royalties


Licence and Other Fees




China


8,676


8,505


-


171




Sinopec Shengli Oilfield Company


4,008


3,957


-


51




Sinopec Zhongyuan Oilfield Company


788


765


-


23




Sinopec Henan Oilfield Company


285


285


-


-




Sinopec Jianghan Oilfield Company


1,270


1,250


-


20




Sinopec Jiangsu Oilfield Company


276


276


-


-




Sinopec Shanghai Offshore Petroleum Company


57


57


-


-




Sinopec North China  Company


358


336


-


22




Sinopec Northwest Oilfield Company


900


900


-


-




Sinopec East China  Company


122


122


-


-




Sinopec Northeast Oil and Gas Company


84


78


-


6




Sinopec Southwest Oil & Gas Company


529


481


-


49




Angola


671


671


-


-




Sonangol Sinopec International Limited


671


671


-


-



 
5. Reporting by Government
                                                                                                              Unit: RMB million



Government


Total Amount of Payments


Taxes


Royalties


Licence and Other Fees




China


 8,676


 8,505


-


 171




Ministry of Finance


 1,022


 1,022


-


 -




State Administration of Taxation


 7,483


 7,483


-


 -




Ministry of Natural Resources


 171


 -  


-


171




Angola


671


671


-


-




Ministry of Finance


671


671


-


-



 




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