KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2012
F-106
22.
LONG-TERM PROVISIONS
2012
2011
USD 000’s
USD 000’s
Decommissioning provision
1,989
1,578
Retirement benefit obligation
1,482
1,116
3,471
2,694
a)
Decommissioning provision
2012
2011
USD 000’s
USD 000’s
As at 1 January
1,578
1,087
Unwinding of discount
158
107
Changes in estimate
253
384
As at 31 December
1,989
1,578
The provision for decommissioning is based on the net present value of the Group’s share of the expenditure
which may be incurred at the end of the producing life of each field (currently estimated in 2017, 2026 and
2028) in the removal and decommissioning of the facilities currently in place. The provision has been
estimated using existing technology and current prices.
