KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2013
F-57
16.
INTANGIBLE EXPLORATION AND EVALUATION (‘E&E’) ASSETS
E&E assets
USD 000’s
Cost
As at 1 January 2012
149,201
Additions
37,447
Exploration expenditure written off
(3,680)
As at 31 December 2012
182,968
Additions
78,928
Exploration expenditure written off in relation to discontinued operations (see note 14)
(18,622)
Other exploration expenditure written off
(47,822)
As at 31 December 2013
195,452
As at 31 December 2013, exploration costs of USD 195,452 thousand (2012: USD 182,968) thousand were not
amortised, pending further evaluation of whether or not the related oil and gas properties are commercially viable.
Of the total amount held on the Balance Sheet, USD 46,866 thousand (December 2012: 41,771 thousand) relates
to unsuccessful exploration expenditure that is supported by the estimated value of the residual exploration assets
in the relevant cost pool.
Exploration expenditure written off of USD 47,822 thousand includes USD 29,181 thousand relating to Licence 1
in Latvia where, due to unsuccessful exploration well results, the Group has decided to exit the country. Further
the Company has written off exploration expenditure amounting to USD 1,750 thousand related to block 83 in
Yemen, USD 15,796 thousand in Pakistan Jherruk and Kunri fields and USD 1,095 thousand in Somalia due to
unsuccessful exploration results. Exploration expenditure written off during the previous year of USD 3,680
thousand was related to block 74 in Yemen where the license was surrendered. With the exception of Yemen, all
these write offs have been reported within the “other” segment in note 5.
17.
PROPERTY PLANT AND EQUIPMENT
Oil and
gas assets
Other
fixed assets
Total
USD 000’s
USD 000’s USD 000’s
Cost
As at 1 January 2012
693,164
11,195
704,359
Additions
78,614
3,756
82,370
Write-back of asset
5,374
-
5,374
Impairment reversal
540
-
540
Disposal
(763)
(511)
(1,274)
As at 1 January 2013
776,929
14,440
791,369
Additions
109,152
2,869
112,021
Acquisition of subsidiary (note 15)
129,922
-
129,922
Reclassified as held for sale (note 14)
(331,625)
-
(331,625)
As at 31 December 2013
684,378
17,309
701,687
Accumulated Depreciation, depletion, amortisation and impairment
As at 1 January 2012
208,134
3,098
211,232
Charge for the year
65,835
1,888
67,723
Impairment
30,862
-
30,862
Write-back of asset
1,308
-
1,308
