KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2012
F-102
13.
INTANGIBLE EXPLORATION AND EVALUATION (‘E&E’) ASSETS (CONTINUED)
As at 31 December 2012, exploration costs of USD 182,968 thousand (2011: USD 149,201 thousand) were not
amortised, pending further evaluation of whether or not the related oil and gas properties are commercially
viable. Exploration expenditure written off amounting to USD 3,680 thousand relates to block 74 in Yemen,
where the licence was surrendered during the year.
14.
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 2011
462,373
8,323
470,696
Additions
105,530
2,894
108,424
Transfer from E&E assets
131,036
-
131,036
Write-off of asset
(5,374)
-
(5,374)
Disposal
(401)
(21)
(422)
Currency translation effect
-
(1)
(1)
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 31 December 2012
776,929
14,440
791,369
Depreciation, depletion, amortisation and
impairment losses
As at 1 January 2011
161,645
1,802
163,447
Charge for the year
48,145
1,307
49,452
Write-off of asset
(1,308)
-
(1,308)
Disposal
(348)
(11)
(359)
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
Disposal
(282)
(212)
(494)
As at 31 December 2012
305,857
4,774
310,631
Carrying amount
As at 31 December 2012
471,072
9,666
480,738
As at 31 December 2011
485,030
8,097
493,127
During the year, the Group incurred impairment losses on certain oil and gas properties of USD 30,862
thousand (2011: USD 4,066 thousand) and reversed impairment losses amounting to USD 4,606 thousand,
these impairment losses and reversals are described in more detail in note 9.
The additions to oil and gas assets include USD 4,053 thousand (2011: USD 4,997 thousand) of finance costs
on qualifying assets capitalised during the year using a weighted average interest rate of 6.62%, see note 30.
The property, plant and equipment of the subsidiaries Kuwait Energy Egypt Ltd and Kuwait Energy Ukraine
Limited, with a net book value at 31 December 2012 of USD 348,161 thousand are under registered mortgage
to secure certain bank loans (see note 20).
