Dedication across the board
Annual Report 2012

Consolidated Financial Statements

5. Property, plant and equipment

The movement of property, plant and equipment for the years ended December 31, 2011 and 2012 was as follows:

In thousand of US dollar Oil and gas
properties
Total
oil and
gas
proper-
ties
Non oil and gas properties Total
non oil
gas
proper-
ties 
 
Working
assets
CIP Buildings Machinery
& equip-
ment
Vehicles Others Total
Balance at December 31,
2010, net of
accumulated
depreciation
456,005 490,825 946,830 2,614 3,325 1,504 1,638 9,081 955,911
                   
Additions 6,318 180,042 186,360 2,714 789 40 1,360 4,903 191,263
Transfers 464,860 465,625) (765) 765 - - - 765 -
Disposal (38) - (38) (123) (98) (234) (181) (636) (674)
Depreciation charge (23,967) - (23,967) (482) (1,097) (204) (297) (2,080) (26,047)
Balance at December 31,
2011, net of
accumulated
depreciation
903,178 205,242 1,108,420 5,488 2,919 1,106 2,520 12,033 1,120,453
                   
                   
Additions 5,816 192,032 197,848 609 4,062 378 2,026 7,075 204,923
Transfers 192,872 (194,486) (1,614) 358 1,245 - 11 1,614 -
Disposals (61) - (61) - (143) - (201) (344) (405)
Disposals depreciation 6 - 6 - 140 - 180 320 326
Depreciation charge (99,209) - (99,209) (848) (1,727) (314) (534) (3,423) (102,632)
Balance at December 31,
2012, net of
accumulated
depreciation
1,002,602 202,788 1,205,390 5,607 6,496 1,170 4,002 17,275 1,222,665
                   
                   
Cost at December 31, 2011 1,010,746 205,242 1,215,988 7,594 5,813 2,625 4,017 20,049 1,236,037
Accumulated depreciation (107,568) - (107,568) (2,106) (2,894) (1,519) (1,497) (8,016) (115,584)
Balance at December 31,
2011, net of
accumulated
depreciation
903,178 205,242 1,108,420 5,488 2,919 1,106 2,520 12,033 1,120,453
                   
Cost at December 31, 2012 1,209,373 202,788 1,412,161 8,561 10,977 3,003 5,853 28,394 1,440,555
Accumulated depreciation (206,771) - (206,771 (2,954) (4,481) (1,833) (1,851) (11,119) (217,890)
Balance at December 31,
2012, net of
accumulated
depreciation
1,002,602 202,788 1,205,390 5,607 6,496 1,170 4,002 17,275 1,222,665

 

The category "Oil and Gas properties" represents mainly wells, oil and gas treatment facilities, oil transportation and other related assets.

The depletion rate for oil and gas working assets was 11.96% and 4.8% in 2012 and 2011, respectively. The unamortized costs of oil and gas properties include all capitalized costs net of accumulated amortization.

The Group engaged independent petroleum engineers to perform a reserves evaluation as at December 31, 2011. Depletion has been calculated using the unit of production method based on these reserves estimates.

The Group incurred borrowing costs including amortization of arrangement fee of US$ 74,401 thousand, and US$ 54,647 thousand for the years ended December 31, 2012 and 2011. For the same periods, the Group capitalized borrowing costs totaling US$ 26,080 thousand and US$ 51,590 thousand, at capitalization rates of 15.65% and 11.73%, respectively.