KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2012
F-110
26.
RELATED PARTY TRANSACTIONS
Related parties comprise major shareholders, directors and executive officers of the Group, their families and
companies of which they are the principal owners. Balances and transactions between the Company and its
subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this
note.
Note 1 contains information on the restructuring of the Group and the basis of preparation of the financial
statements. No transactions between the Company and Kuwait Energy K.S.S.C. prior to the completion of
the restructuring are disclosed in this note due to the merger accounting approach followed.
Kuwait Energy KSSC, the parent company prior to the restructuring has continued to provide staff to the
Group at cost plus a mark-up, representing an arm’s length transaction, whilst the contracts for those staff are
transferred to subsidiaries of the group. The charge to the Group after completion of the restructuring in this
regard was USD 145 thousand (2011 : USD nil) and USD 1,148 thousand was owed to Kuwait Energy KSSC
in this regard at 31 December 2012 (2011: USD 569 thousand)
The other related party transactions and balances included in the Group’s consolidated financial statements
are as follows:
a) Compensation of key management personnel:
Key management personnel are considered to be the Board of Directors of the Company and, prior to the
restructuring described in note 1, Kuwait Energy K.S.S.C. and other members of the management team
The remuneration of key management personnel during the year was as follows:
2012
2011
USD 000’s
USD 000’s
Salaries and other short-term benefits
2,043
1,938
Consultancy fees paid to non- executive director
98
-
Termination benefits
-
102
Share-based payments
592
240
2,733
2,280
b) Agreement to purchase shares (see note 31)
11,000
11,000
