110-111 / 116
110
KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2014
51
33.
SUBSEQUENT EVENTS
a)
On 16 July 2014, KEC signed a farm out agreement to assign to EGPC a 10% working interest share in the Block
9 exploration, development and production service contract in Iraq, with an effective date of 1 July 2013. The
conditions precedent have been satisfied and the deed of assignment is now in the process of being signed by all
relevant parties (EGPC, KE, Dragon Oil and SOC).
b)
Subsequent to the year end, agreement was signed for purchase of an additional 25% interest in BEA field in
Egypt from Gharib Oil Fields effective 15 January 2015. This is still subject to final approval from EGPC.
c)
As at 31 December 2014 the Group had property, plant and equipment with a carrying value of USD 59,932
thousand and intangible exploration assets with a carrying value of USD 29,794 thousand in Yemen where,
subsequent to the year end, the political and security situation has become unstable. However, management
believes that in the longer term the situation will be resolved and that no additional impairment is required.
Between January and April 2015, two cargoes were lifted from the Block 5 field. However, as at the end of April
2015, operations are shut in along with other nearby producing blocks largely as a result of no spare storage
capacity at the offshore terminal at Ras Issa port, and the concession is currently under Force Majeure. Non-
Yemeni employees have been withdrawn for their safety and security, Yemeni employees remain on site and the
facility remains available for the use of the Group.