Auditor Says CNPC Accounting Error Understated 2012 Profit
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China National Petroleum Corp., the country’s biggest oil and gas producer, underreported 2012 profit by 603 million yuan ($97 million) because of accounting errors, China’s state auditor said today.
A review of CNPC’s 2012 financial results found company units miscalculated natural gas sales income, the National Audit Office said in a statement posted on its website today. CNPC failed to develop a natural gas project in Sichuan on time after receiving government approval and built a 2.1 billion yuan gas storage project in northeast China’s Liaohe Oilfield in 2011 without permission, according to the statement.