28. PROVISIONS
Provisions primarily represent provision for future dismantlement costs of oil and gas properties. The Group has mainly committed to the PRC government to establish certain standardized measures for the dismantlement of its oil and gas properties by making reference to the industry practices and is thereafter constructively obligated to take dismantlement measures of its oil and gas properties.
Movement of provision of the Group’s obligations for the dismantlement of its oil and gas properties is as follows:
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1 |
|
29,613 |
|
33,115 |
|
36,918 |
|
|
Provision for the year |
|
2,899 |
|
3,420 |
|
1,627 |
|
|
Accretion expenses |
|
1,081 |
|
1,057 |
|
1,501 |
|
|
Utilized for the year |
|
(599 |
) |
(843 |
) |
(467 |
) |
|
Exchange adjustments |
|
121 |
|
169 |
|
(172 |
) |
|
|
|
|
|
|
|
|
|
|
Balance as of December 31 |
|
33,115 |
|
36,918 |
|
39,407 |
|
|
|
|
|
|
|
|
|
|