Q：In my opinion, the company is not as active in M&A as CNOOC and Sinopec. Is this the case? (August 30, 2012)
A：CNPC's
Q：Why did PetroChina request shareholders pay tax on dividends even after the Company paid after-profit tax to the government? (11th Jan., 2012)
A：The Company pays the corporate income tax to the government, while the shareholders pay dividend tax. These are two different types of taxes paid by two separate tax-paying entities. (12th Jan., 2012)
Q：Can you explain the impact of lifting the threshold of the Special Oil Income Levy to the Company? (5th Jan., 2012)
A：Thank you for your interest in PetroChina. The Special Oil Income Levy was introduced by the government on 26 Mar., 2006 to tax oil companies at a rate proportional to the excess income from the sales of domestic produced crude oil at prices above the threshold level. The previous threshold was US$40/barrel, and the calculation of the levy is based on 5 category progressive valorem rates that range from 20% to 40%.
Pursuant to the notice on the Increase of the Threshold of the Special Oil Income Levy from the Ministry of Finance of the People's Republic of China ("MOF"), the threshold of the special oil income levy was increased to US$55/barrel, with effect on 1 November 2011. Notwithstanding the adjustment, the special oil income levy will continue to be graded in five levels and will be calculated and charged according to the progressive valorem rates on the excess amounts. The special oil income levy is calculated on a monthly basis and collected on a quarterly basis. The levy is now fixed at 20%, 25%, 30%, 35% and 40% per barrel of crude oil at price ranges of US$55 to US$60, US$60 to US$65, US$65 to US$70, US$70 to US$75, and over US$75, respectively.
The lifting of the Threshold of the Special Oil Income Levy is important to PetroChina as it eases the tax burden on the oil companies, therefore allowing them to commit more efforts to oil and gas exploration and helping to improve the Company's ROI. (6th Jan., 2012)
Q：What is the purpose and practical significance of setting up a captive insurance company with CNPC? (5th Jan., 2012)
A：The Company entered into a Capital Contribution Agreement with CNPC on 4 January 2012 in which the two parties have agreed to set up a captive insurance company with registered capital of RMB 5 billion. CNPC holds a 51% equity interest in the captive insurance company, and the Company holds the remaining 49%. Due to the high risky and specialty characteristics of the petroleum industry, normal business insurance cannot cover all risks of the Company's operations. For the purpose of satisfying the risk management requirements of its high risk and overseas projects so as to reasonably mitigate its operational risks, balance its insurance costs, improve its ability to withstand risks and ensure the insurance enforcement effect in the event of the occurrence of certain covered incidents, the Company decided to set up the joint venture insurance company. The joint venture company is principally engaged in( within the Group, including PetroChina) property insurance, liability insurance, credit insurance, guarantee insurance, short term health insurance, accident insurance, the reinsurance of those insurance businesses and the use of insurance funds as permitted by the relevant laws and regulations. (5th Jan 2012)