KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
F-147
44.
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 2010
404,278
4,903
409,181
Additions
64,808
3,611
68,419
Transfer to other receivables (See note 30 (a))
(4,775)
-
(4,775)
Farm out of working interests (See note 13)
(2,000)
-
(2,000)
Disposal of other assets
-
(192)
(192)
Currency translation effect
62
1
63
As at 1 January 2011
462,373
8,323
470,696
Additions
105,530
2,894
108,424
Transfer from intangible exploration and
evaluation assets
131,036
-
131,036
Impairment
(5,374)
-
(5,374)
Disposal
(401)
(21)
(422)
Currency translation effect
-
(1)
(1)
As at 31 December 2011
693,164
11,195
704,359
Depreciation, depletion, amortisation and
impairment losses
As at 1 January 2010
102,562
949
103,511
Charge for the year
59,511
906
60,417
Farm out of working interests (See note 13)
(431)
-
(431)
Disposal of other assets
-
(53)
(53)
Currency translation effect
3
-
3
As at 1 January 2011
161,645
1,802
163,447
Charge for the year
48,145
1,307
49,452
Impairment reversal
(1,308)
-
(1,308)
Disposal
(348)
(11)
(359)
Currency translation effect
-
-
-
As at 31 December 2011
208,134
3,098
211,232
Carrying amount
As at 31 December 2011
485,030
8,097
493,127
As at 31 December 2010
300,728
6,521
307,249
During the year, the Group incurred impairment losses on certain oil and gas properties of USD 4,066
thousand (2010: USD Nil) (Note 8). As the related licence has been lost the impairment has been shown as a
deduction from the original cost of the assets and related provisions recorded in previous years have been
reversed. The additions to oil and gas assets include USD 4,997 thousand (2010: USD 4,045 thousand) of
finance costs on qualifying assets capitalised during the year using a weighted average interest rate of 10.1%
(2010: 10.1%).
The property, plant and equipment of the subsidiaries Kuwait Energy Egypt Ltd, Kuwait Energy Yemen Ltd
and Pechora Energy Company Limited, with a net book value at 31 December 2011 of USD 445,835
thousand are under registered mortgage to secure certain bank loans (See note 20).
