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KUWAIT ENERGY PLC

NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS

For the nine month period ended 30 September 2017

15

9.

CASH AND CASH EQUIVALENTS

30 September

31 December

2017

2016

Unaudited

Audited

US$ 000’s

US$ 000’s

Cash and cash equivalents

43,165

58,311

43,165

58,311

Cash and cash equivalents includes nil (31 December 2016: US$ 4.0 million) which is restricted against issue of letters

of guarantee.

10.

ASSETS HELD FOR SALE

Siba farm-out

In May 2017 the Group has completed a farm-out transaction relating to its interest in the Iraq Siba area gas

development and production service contract. Under the terms of the farm-out agreement, which has an effective

date of 1 January 2016, the farmee has been assigned a 20% paying and 15% revenue interest in Siba and the Group

retains a 40% paying and 30% revenue interest. The farmee has settled a part of the consideration in cash, and part of

the consideration will be settled by paying the Group’s share of costs of a major related contract. The balance owed

to the group after settlement of this contract will be received from the farmee’s allocation of revenue once production

commences from this field. The current portion of deferred consideration is included in other receivables and the fair

value of the non-current portion was calculated by discounting expected receipts based on management’s best

estimate of timing and is included in other non-current assets.

Abu Sennan farm-out

In September 2017 the Group has completed a farm-out transaction to assign a 25% interest in Abu Sennan in Egypt

with an effective date of 31 December 2016.

During the period ended 30 September 2017, a loss of US$2.6 million on assets held for sale was recognised in the

consolidated income statement, relating to the period between the effective date and completion.