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KUWAIT ENERGY PLC
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
Six months ended 30 June 2015
15
7.
INTANGIBLE EXPLORATION AND EVALUATION (‘E&E’) ASSETS
E&E assets
USD 000’s
As at 1 January 2014
58,178
Additions
56,819
Exploration expenditure written off
(1,513)
Transfer to Property, plant and equipment
(66,996)
As at 31 December 2014
46,488
Additions
9,161
Exploration expenditure written off
(2,519)
Transfer to Property, plant and equipment
(10,499)
As at 30 June 2015
42,631
As at 30 June 2015, exploration costs include USD 31,894 thousand (31 December 2014: USD 29,794 thousand)
relating to Block 49 and 82 in Yemen where in 2015, the political and security situation has become unstable. The work
of operations on site has been put on hold and force majeure has been declared on both blocks during the period. There
has been no incursion at either site and control of assets has been maintained. Management believes that in the longer
term the situation will be resolved and that no exploration write-off is required.
During the period ended 30 June 2015, the Company has written off unsuccessful exploration expenditure amounting to
USD 2,519 thousand related to Area A field in Egypt (31 December 2014: USD 1,513 thousand related to BEA field in
Egypt).
During the period ended 30 June 2015 exploration cost associated with proven commercial reserves amounting USD
10,499 thousand relating to Abu Sennan in Egypt (2014: USD 56,712 thousand relating to Block 9 in Iraq and USD
10,284 thousand to BEA and Abu Sennan in Egypt) were transferred to property, plant and equipment.
8.
PROPERTY PLANT AND EQUIPMENT
Oil and
gas assets
Other fixed
assets
Total
Cost
USD 000’s USD 000’s USD 000’s
As at 1 January 2014 (audited)
585,008
17,309
602,317
Additions
208,196
1,130
209,326
Disposal
-
(15)
(15)
Transfer from Intangible Exploration and Evaluation
66,996
-
66,996
As at 31 December 2014 (audited)
860,200
18,424
878,624
Additions
100,928
7,509
108,437
Acquisition of asset
16,769
-
16,769
Disposal
(24,874)
-
(24,874)
Transfer from Intangible Exploration and Evaluation
10,499
-
10,499
As at 30 June 2015 (unaudited)
963,522
25,933
989,455
Accumulated Depreciation, depletion, amortisation and impairment
As at 1 January 2014 (audited)
246,664
6,686
253,350
Charge for the period
81,853
1,652
83,505
Impairment
19,247
-
19,247
Disposal
-
(15)
(15)
As at 31 December 2014 (audited)
347,764
8,323
356,087
Charge for the period
43,920
674
44,594
Disposal
(24,874)
-
(24,874)
As at 30 June 2015 (unaudited)
366,810
8,997
375,807
Carrying amount
As at 30 June 2015 (unaudited)
596,712
16,936
613,648
As at 31 December 2014 (audited)
512,436
10,101
522,537