| 34 | COMMITMENTS |
(a) Operating lease commitments
Operating lease commitments of the Group are mainly for leasing of land, buildings and equipment. Leases range from 1 to 50 years and usually do not contain renewal options. Future minimum lease payments as of December 31, 2017 and 2016 under non-cancellable operating leases are as follows:
| December 31, 2017 |
December 31, 2016 |
|||||||
| RMB | RMB | |||||||
|
No later than 1 year |
11,519 | 10,108 | ||||||
|
Later than 1 year and no later than 5 years |
37,033 | 30,757 | ||||||
|
Later than 5 years |
180,833 | 148,961 | ||||||
|
|
|
|
|
|||||
| 229,385 | 189,826 | |||||||
|
|
|
|
|
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(b) Capital commitments
At December 31, 2017, the Group’s capital commitments contracted but not provided for mainly relating to property, plant and equipment were RMB 70,563 (December 31, 2016: RMB 59,664).
The operating lease and capital commitments above are transactions mainly with CNPC and its fellow subsidiaries.
(c) Exploration and production licenses
The Company is obligated to make annual payments with respect to its exploration and production licenses to the Department of Natural Resources. Payments incurred were RMB 609 for the year ended December 31, 2017 (2016: RMB 639, 2015: RMB 643).
According to the current policy, estimated annual payments for the next five years are as follows:
| December 31, 2017 |
December 31, 2016 |
|||||||
| RMB | RMB | |||||||
|
Within one year |
800 | 800 | ||||||
|
Between one and two years |
800 | 800 | ||||||
|
Between two and three years |
800 | 800 | ||||||
|
Between three and four years |
800 | 800 | ||||||
|
Between four and five years |
800 | 800 | ||||||