China’s state auditor announced on Friday that CNPC, due to accounting errors, underreported 2012 profit by $97 million.
National Audit Office said a review of CNPC’s 2012 financial results found company units miscalculated natural gas sales income.
According to the auditor, CNPC failed to develop a natural gas project in Sichuan on time after receiving government approval, and built a $337 million gas storage project in the Liaohe Oilfield in 2011 without permission.
“We find through our auditing that CNPC has problems in areas such as operations and internal management, and some managers may have violated laws and regulations. We have submitted our findings on violations to related departments for further investigation,” the auditor said in the statement.
PetroChina said the issues identified by the auditor “have no big impact to the company’s operations and financial records.”